Miller Manufacturing Company is evaluating the results of two divisions:

Items	Eastern Division	Western Division
Sales	40,000,000	70,000,000
Operating income	3,800,000	6,500,000
Total assets	21,000,000	19,000,000

Management expects each division to earn a 25% return on assets.

Required:

1. Calculate the profit margin for each division.
2. Calculate investment turnover for each division.
3. Calculate Return on Investment using the DuPont formula.
4. Calculate residual income for each division.