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Warren Company has two divisions with the following results: Ashland Erie $1,300,000 Sales revenue $ 460,000 $ 280,000 $ 860,000 Divisional expenses Segment income $

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Warren Company has two divisions with the following results: Ashland Erie $1,300,000 Sales revenue $ 460,000 $ 280,000 $ 860,000 Divisional expenses Segment income $ 180,000 $ 360,000 Average invested assets $1,300,000 $4,100,000 Warren Company has a hurdle rate of 13.0%. a. Calculate the return on investment for each division. (Round your answers to 2 decimal places.) Return on investment Ashland % Erie % b. Break each division's return on investment down into its component parts using the DuPont method. (Round your profit margin to 2 decimal places and investment turnover to 3 decimal places.) Profit Investment Turnover margin % Ashland Erie % c. Calculate the residual income for each division. (Negative amounts should be indicated by a minus sign.) Residual Income Ashland Erie

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