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: East Division West Division
Revenues $1,200,000  $800,000 
Operating expenses 950,000  640,000 
Service department charges 145,000  72,000 
Invested assets 800,000  500,000 

Required:
a. Prepare condensed income statements for the past year for each division.
b. Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round to one decimal place.
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