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.................................516000

Purchasing Department....................................89600

Other corporate administrative expenses.......560000

Total corporate expense .................................1165600

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:

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:

Prepare the divisional income statements for the two divisions.

Tech Support 375 computers 225 600 computers Purchasing Consumer Division Commercial Division 1,960 purchase orders 3,640 Total 5,600 purchase orders Revenues Cost of goods sold Operating expenses Consumer $7,430,000 4,123,000 1,465,000 Commercial $6,184,000 3,125,000 1,546,000