Divisional Performance Analysis and Evaluation
The vice president of operations of Recycling Industries is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows:
1.Prepare condensed divisional income statements for the year ended December 31, 20Y8, assuming that there were no support department allocations.
Extracted text: statement data for the past year for each division are as follows: Business Division Consumer Division Sales $42,800,000 $56,000,000 Cost of goods sold 23,500,000 30,500,000 Operating expenses 11,424,800 14,300,000 Invested assets 34,240,000 70,000,000 Required: 1. Prepare condensed divisional income statements for the year ended December 31, 20Y8, assuming that there were no support department allocations. Recycling Industries Divisional Income Statements For the Year Ended December 31, 20Y8 Business Division Consumer Division Sales $4 Cost of goods sold Gross profit Operating expenses Operating income $4