Fresh Air Sporting Goods Co. operates two divisions—the Camping Equipment Division and the Ski Equipment Division. The following income and expense accounts were provided from the trial balance as of June 30, the end of the current fiscal year, after all adjustments, including those for inventories, were recorded and posted:

The bases to be used in allocating expenses, together with other essential information, are as follows:

a. Advertising expense—incurred at headquarters, charged back to divisions on the basis of usage: Camping Equipment Division, $\$9,800;$ Ski Equipment Division, \($7,400\).

b. Transportation expense—charged back to divisions at a transfer price of $\$5.20$ per bill of lading: Camping Equipment Division, 2,575 bills of lading; Ski Equipment Division, 2,250 bills of lading.

c. Accounts receivable collection expense—incurred at headquarters, charged back to divisions at a transfer price of $\$1.90$ per invoice: Camping Equipment Division, 1,250 sales invoices; Ski Equipment Division, 1,100 sales invoices.

d. Warehouse expense charged back to divisions on the basis of floor space used in storing division products: Camping Equipment Division, 10,000 square feet;
Ski Equipment Division, 5,000 square feet.
Prepare a divisional income statement with two column headings: Camping Equipment Division and Ski Equipment Division. Provide supporting schedules for determining service department charges.

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Sales-Camping Equipment Division Sales-Ski Equipment Division .... $800,000 645,000 Cost of Goods Sold-Camping Equipment Division Cost of Goods Sold-Ski Equipment Division. 548,000 395,000 Sales Expense-Camping Equipment Division Sales Expense-Ski Equipment Division ... 80,000 76,800 Administrative Expense-Camping Equipment Division 65,400 Administrative Expense-Ski Equipment Division 76,700 Advertising Expense. 17,200 Transportation Expense.. 25,090 Accounts Receivable Collection Expense 4,465 Warehouse Expense 45,000