Hartz Industries has two divisions as follows:

	American	National
Net Income	9,000,000	15,000,000
Invested Assets	36,000,000	40,000,000
Expected Rate of Return	12.00%	10.50%
Return on Investment
Expected Net Income
Residual Income

Required

• Calculate the return on investment for both divisions (show as percentage with two decimals)
• Calculate the expected income from operations for both divisions
• Calculate the residual income for both divisions
• Which division performed better? Support your answer.

1. Which division performed better? Support your answer with numbers.