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:							SEE PAGE 487.
						Division
	(All numbers are in dollars)				Western		Eastern
	Revenues				675000		480000
	Operating expenses				450000		372400
	Service department charges				90000		50000
	Invested assets				600000		384000
	Instructions: NOTE: SHOW ALL WORK.
	1.	Prepare a condensed income statement for the past year for each division that
		includes operating income (or loss) from operations.

2.	Using the DuPont formula, determine (a) the profit margin, (b) investment turnover,
	and ( c ) rate of return on investment for each division.					SEE PAGE 488.
3.	If management's minimum acceptable rate of return is 10 percent, determine the
	residual income for each division.			SEE PAGE 489.