Managerial Accounting: E8-9 Full Throttle Sporting Goods Co. operates two divisions

Managerial Accounting 
E8-9 Profit Center Responsibility Reporting 
Full Throttle Sporting Goods Co. operates two divisions'the Winter Sports Division and the Summer Sports Division. The following income and expense accounts were provided from the trial balance as of December 31, 2014, the end of the current fiscal year, after all adjustments, including those for inventories, were recorded and posted: 
Sales: 
—Winter Sports Division 31,500,000 
—Summer Sports Division 36,400,000 
Cost of Goods Sold: 
—Winter Sports Division 18,900,000 
—Summer Sports Division 21,112,000 
Sales expense: 
—Winter Sports Division 5,040,000 
—Summer Sports Division 5,096,000 
Administrative Expense: 
—Winter Sports Division 3,150,000 
—Summer Sports Division 3,239,600 
Advertising Expense 1,357,900 
Transportation Expense 595,000 
Accounts Receivable Collection Expense 240,000 
Warehouse Expense 2,650,000 

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: Winter Sports Division, $611,000; Summer Sports Division, $746,900. 
b. Transportation expense'charged back to divisions at a charge rate of $14.00 per bill of lading: Winter Sports Division, 20,400 bills of lading; Summer Sports Division, 22,100 bills of lading. 
c. Accounts receivable collection expense'incurred at headquarters, charged back to divisions at a charge rate of $7.50 per invoice: Winter Sports Division, 13,120 sales invoices; Summer Sports Division, 18,880 sales invoices. 
d. Warehouse expense'charged back to divisions on the basis of floor space used in storing division products: Winter Sports Division, 124,550 square feet; Summer Sports Division, 140,450 square feet. 

Required: 
Prepare a divisional income statement with two column headings: Winter Sports Division and Summer Sports Division. Round your interim calculations to two decimal places, if required. Provide supporting calculations for service department charges. If required, round per unit amounts to two decimal places and final answers to the nearest dollar.
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