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Divisional income statements with service department charges Instructions Label and Amount Descriptions Divisional Income Statements Instructions \begin{tabular}{|l|c|} \hline Tech Support Department & $510,300 \\ \hline Purchasing Department & 60,500 \\ \hline Other corporate administrative expenses & 580,000 \\ \hline Total corporate expense & $1,150,800 \\ \hline \hline \end{tabular} the department, and the Purchasing Department charges divisions for services, based on the number of purchase orders for each department. The usage of service by the two divisions is as follows: \begin{tabular}{|l|l|l|} \hline & Tech Support & \multicolumn{1}{|c|}{ Purchasing } \\ \hline Consumer Division & 320 computers & 2,000 purchase orders \\ \hline Commercial Division & 310 & 3,500 \\ \hline Total & 630 computers & 5,500 purchase orders \\ \hline \hline \end{tabular} revenues, cost of goods sold, and operating expenses for the two divisions are as follows: Required: Prepare the divisional income statements for the two divisions. Refer to the list of Label and Amount Descriptions for the exact wording of the answer choices for text entries. A colon (:) will fill in where needed. Label and Amount Descriptions Label Service department charges Amount Descriptions Advertising Department Cost of goods sold Gross profit Income from operations Income from operations before service department charges Operating expenses Purchasing Department Revenues repare the divisional income statements for the two divisions. Refer to the list of Label and Amount Descriptions for the exact wording of the answer choices for text entries. A colon (:) will fill in where needed. 10 11

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