Warren Company has two divisions with the following results:

	Ashland			Erie
Sales revenue	$	455,000		$	1,250,000
Divisional expenses	$	275,000		$	855,000
Segment income	$	180,000		$	355,000
Average invested assets	$	1,250,000		$	4,050,000

Warren Company has a hurdle rate of 12.5%.

a. Calculate the return on investment for each division. (Round your answers to 2 decimal places.)

b. Break each divisions 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.)

c. Calculate the residual income for each division. (Negative amounts should be indicated by a minus sign.)