Average investment Sales revenue Operating expenses Operating earnings Required: $ 7,770,000 $10,000,000 8,609,000 $4,611,000 $2,000,000 1,049,000 $1,114,000 $ 600,000 478,000 $ 1,391,000 $ 951,000 $ 122,000 a. Compute the ROI for each department. Use the DuPont method to analyze the return on sales and capital turnover. Assume the Health Spa is considering installing new exercise equipment. Upon investigating, the manager of the division finds that the equipment would cost $40,000 and that operating earnings would increase by $8,000 per year as a result of the new equipment. b-1. What would be the ROI of investment in the new exercise equipment and Health Spa? b-2. Would the manager of the Health Spa be motivated to undertake such an investment? c-1. Compute the residual income for each department if the minimum required return for the Empire Hotel is 17 percent. c-2. What would be the impact of the investment on the Health Spa's residual income? Answer is not complete. Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C1 Req C2 What would be the ROI of investment in the new exercise equipment and Health Spa? (Round your percentage answers to 2 decimal places (i.e., 0.1234 should be considered as 12.34.)) Exercise Equipment RO 20.00 % Health Spa % < Req A Req 82 >