The following data were summarized from the accounting records for Jersey Coast Construction Company for the year ended June 30, 20Y8: Cost of goods sold: Service department charges:
Commercial Division $497,230 Commercial Division $67,800
Residential Division 248,910 Residential Division 43,120
Administrative expenses: Net sales:
Commercial Division $90,410 Commercial Division $753,380
Residential Division 88,900 Residential Division 444,490

Required:
Prepare divisional income statements for Jersey Coast Construction Company.

                      Divisional income statements

              Jersey Coast Construction Company

Particulars                                               Commercial    Residential

Net sales                                                  $753,380         $444,490

Cost of goods sold                                  $497,230         $248,910

Gross profit                                              $256,150          $195,580

Administrative expenses                        $90,410             $88,900

Income from operation before service  $165,740           $106,680

Service department charges                  $67,800            $43,120

Income from operation                           $97,940             $63,560

answer the law of increasing costs;