E 12. Momence Associates is evaluating the performance of three divisions: Maple, Oaks, and Juniper. Using the following data, compute the return on investment and residual income for each division, compare the divisions’ performance, and comment on the factors that influenced performance:

LO3 LO4 Green Products, Inc.

Income Statement For the Year Ended December 31 Sales $296,400 Cost of goods sold 112,750 Gross margin $183,650 Selling expenses Variable 69,820 Fixed 36,980 Administrative expenses 27,410 Operating income $ 49,440 Maple Oaks Juniper Sales $100,000 $100,000 $100,000 Operating income $10,000 $10,000 $20,000 Assets invested $25,000 $12,500 $25,000 Desired ROI 40% 40% 40%

Economic Value Added