Benson Corporation operates three investment centers. The following financial statements apply to the investment center named Bowman Division: BOWMAN DIVISION Income Statement For the Year Ended December 31, Year 2 Sales revenue Cost of goods sold Gross margin Operating expenses Selling expenses Depreciation expense Operating income Nonoperating item Loss on sale of land Net income $ 106,080 59,475 46,605 (2,820) (4,185) 39,600 (4,100) BOWMAN DIVISION Balance Sheet As of December 31, Year 2 $ 35,500 Assets Cash Accounts receivable Merchandise inventory Equipment less accumulated depreciation Nonoperating assets Total assets Liabilities Accounts payable Notes payable Stockholders' equity Common stock Retained earnings Total liabilities and stockholders' equity Required $ 12,582 40,406 37,900 90,428 10,200 $ 191,516 $ 9,497 72,000 71,000 39,019 $ 191,516 a. Which should be used to determine the rate of return (ROI) for the Bowman investment center, operating income or net income? b. Which should be used to determine the ROI for the Bowman investment center, operating assets or total assets? c. Calculate the ROI for Bowman. d. Benson has a desired ROI of 12 percent. Headquarters has $88,000 of funds to assign to its investment centers. The manager of the Bowman Division has an opportunity to invest the funds at an ROI of 14 percent. The other two divisions have investment opportunities that yield only 13 percent. Calculate the new ROI for Bowman division, if the investment opportunity is adopted by Bowman. e. Based on the original data, calculate the original residual income. Also, calculate the new residual income based on information provided in Requirement d. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Required E Calculate the ROI for Bowman. Note: Round your percentage answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45). ROI % Required A Required B Required C Required D Required E Benson has a desired ROI of 12 percent. Headquarters has $88,000 of funds to assign to its investment centers. The manager of the Bowman Division has an opportunity to invest the funds at an ROI of 14 percent. The other two divisions have investment opportunities that yield only 13 percent. Calculate the new ROI for Bowman division, if the investment opportunity is adopted by Bowman. Note: Round your percentage answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45). New ROI % Required A Required B Required C Required D Required E Show less Based on the original data, calculate the original residual income. Also, calculate the new residual income based on information provided in Requirement d. Note: Round your final answers to nearest whole dollar. Original residual income New residual income