Quinn Company has two divisions, Domestic and International. Invested assets and condensed income statement data for each division for the year ended December 31, 2009, are as follows:

                                                         Domestic Division       International Division 

Revenues                                                    $675,000             $480,000

Operating expenses                                 450,000              372,400

Service department charges                  90,000               50,000

Invested assets                                         600,000              384,000

1. Provide condensed income statements for the past year for each division.

2. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment for each division.

3. If management's minimum acceptable return on investment is 10%, determine the residual income for each division.