Blackwood Industries manufactures die machinery. To meet its expansion needs, it recently (2017) acquired one of its suppliers, Delta Steel. To maintain Delta's separate identity, Blackwood reports Delta's operations as an investment center. Blackwood monitors all of its investment centers on the basis of return on investment (ROI). Management bonuses are based on ROI, and all investment centers are expected to earn a minimum 10% return before income taxes. Delta's ROI has ranged from 14% to 18% since 2017. The company recently had the opportunity for a new investment that would have yielded a 13% ROI. However, division management decided against the investment because it believed that the investment would decrease the division's overall ROI. The 2019 operating statement for Delta follows. The division's operating assets were $32,000,000 at the end of 2019, a 5% increase over the 2018 year-end balance. DELTA DIVISION Operating Statement For Year Ended December 31, 2019 (000s omitted) Sales $89,500 Cost of goods sold 58,175 Gross profit 31,325 Operating expenses: Administration $12,808 Selling 13,332 26, 140 Operating income $ 5,185 Required: 1. Calculate the following performance measures for 2019 for the Delta division: a. Return on average investment in operating assets. (Round your intermediate calculations to the nearest whole dollar and final answer to 2 decimal places.) b. Residual income (RI) calculated on the basis of average operating assets. (Round your intermediate calculations. Enter your answer in whole dollars, not in thousands.) % 1a. Return on investment 16. Residual income