The vice president of operations if Avigi IQ Company is evaluating the performance of two division organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows:

Instructions1. Prepare condensed divisional income statement for the year ended December 31, 2012 assuming that there were no service department charges.2. Using the DuPont formula for rate of return on investment, determine the profit margin, investment turnover, and rate of return on investment for each division.3. If management desires a minimum acceptable rate of return of 18%, determine the residual income for each division.4. Discuss the evaluation of the two divisions, using the performance measures determine in parts (1), (2), and (3)

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Business Division $1,800,000 Consumer Division $1,850,000 Sales Cost of goods sold Operating expenses Invested assets 940,000 950,000 493,000 1,200,000 2,312,500