(7 marks) Financial information for Electrico Ltd, a division of T&T Holdings for the year-ended December 31, 2020, was gathered by a recent accounting graduate. He has asked for your assistance on how to analyse the division's financial performance that will be distributed to management. Electrico Ltd Income Statement for the year-ended December 31, 2020 $ 190,000 120,050 $69,950 $41,600 320 Sales Cost of goods sold Gross profit Expenses: Wages Research and development Depreciation Selling Marketing" Administrative Allocated costs Other * Uncontrollable costs 17,000 1,300 800 700 2,050 320 Required: a) In evaluating the performance of Electro Ltd division, which costs should be excluded? Explain. (1 mark) b) Determine the appropriate amount of net income to evaluate Electrico Ltd's performance equitably, (2 marks) c) Calculate the return on investment and residual income for the division. Assume an investment base of $100,000 and 6% cost of capital. (2 marks) d) Outline two ways Electro Ltd division can improve its ROI in the following year. (2 marks) [Word limit: 150] SHOW YOUR WORKING