Yozamba Technology has two divisions, Consumer and Commercial, and two corporate service departments, Tech Support and Purchasing. The corporate expenses for the year ended December 31, 2016, are as follows:

Tech Support Department $ 567,000
Purchasing Department 96,900
Other corporate administrative expenses 590,000
Total corporate expense $1,253,900
The other corporate administrative expenses include officers’ salaries and other expenses required by the corporation. The Tech Support Department charges the divisions for services rendered, based on the number of computers in 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:

Tech Support Purchasing
Consumer Division 360 computers 1,990 purchase orders
Commercial Division 270 3,710
Total 630 computers 5,700 purchase orders
The service department charges of the Tech Support Department and the Purchasing Department are considered controllable by the divisions. Corporate administrative expenses are not considered controllable by the divisions. The revenues, cost of goods sold, and operating expenses for the two divisions are as follows:

Consumer Commercial
Revenues $7,440,000 $6,189,000
Cost of goods sold 4,112,000 3,119,500
Operating expenses 1,458,000 1,543,000
Prepare the divisional income statements for the two divisions. Refer to the list of Labels and Amount Descriptions for the exact wording of the answer choices for text entries.

YOZAMBA TECHNOLOGY

Divisional Income Statements

For the Year Ended December 31, 2016

1

Consumer Division

Commercial Division

2

3

4

5

6

7

8

9

10

Total service department charges

11

Income from operations