Note:
in June 2017, Microsoft disabled the use of JavaScript in a Calculated Column
That means given answers may not apply for newer SharePoint versions
For long explanation and work arounds see:
June 13th 2017 Microsoft blocked handling HTML markup in SharePoint calculated fields - how to get the same functionality back
Original answer:
You do not need the DIVs
And you may want to rewrite you code to produce a (Status) image for all Status values:
="<img src='http://MY_SITE/SiteAssets/Status%20Images/status"
&[Status]
&".png'>"
Do not forget to set the datatype to Number! This only works in Views not on Forms!
So you need images:
statusCompleted.png
statusIn Progress.png
etc...
When building Formulas it is good practice to work from within Notepad (or any decent text-editor) and format you code with Linebreaks and indentations.
Then copy/paste to SharePoint which will ignore all that formatting.
SP2013/Online : CSR
You can use JavaScript to render Views and Forms using SharePoints (new) Client Side Rendering techniques
The iCSR.js support library gets you started with CSR (JavaScript) development
CalcMaster Bookmarklet
I have answered a lot of Formula questions, they are all tagged with ICC (Inline Calculated Columns), easy to find with:
https://sharepoint.stackexchange.com/search?q=ICC
If you know (or want to learn) what a Browser Bookmarklet is; I have Open-Sourced code that makes Formula editting a bit easier; Main feature: it does a syntax check on every keystroke.
https://github.com/Danny-Engelman/CalcMaster
imgsrc
So there is a space missing there. And you can exclude the DIVs, they have no purpose. also note the missing FALSE clause will create HTML:src='FALSE'
resulting in a broken image on screen (for the other Status values)