QUESTION: If the minimum acceptable rate of return is 10%, find the residual income from each division (show work)

R Co. has two divisions, Western and Eastern. Invested assets and a condensed income statement for each of the two divisions at year end June 30, 2015 are as follows: Revenues Cost of goods sold Operating expenses Service department charges Invested assets Prepare a condensed income statement for the past year for each division that includes income from operations