Andersen Company has the following information regarding their three divisions:

	North	South	West
Sales	3,780,000	5,673,000	5,130,000
Operating Expenses	2,678,500	4,494,890	3,770,050
Invested Assets	2,000,000	3,500,000	5,000,000

In addition, there are two additional expenses. Dispatching expense which is allocated based on the number of trains and equipment management which is based on the number of cars. Data for those items are follows:

	Cost	North	South	West
Dispatching	$182,000	650 trains	1,105 trains	845 trains
Equip Management	$1,200,000	6,000 cars	8,400 cars	9,900 cars

Required

• Prepare an income statement showing sales, operating expenses, dispatching expense, equipment management expense and net income for each division and for the total.
• Based on the net income and invested assets, calculate the rate of return on each division and the total. Show the rate of return as a percentage with two decimals.
• Which division performed better? Support your answer with numbers.

	North	South	West	Total
Sales
Operating Expenses
Dispatching Expense
Equipment Management Expense
Net Income
Return on Invested Assets