Calculate the residual income:

(1) At the corporate (headquarters) level before the additional investment.

(2) At the division level before the additional investment.

(3) At the investment level.

(4) At the division level after the additional investment.

Altoona Technologies, Inc. (ATI) has three divisions. ATI has a desired rate of return of 12.5 percent. The operating assets and income for each division are as follows: Operating Income $ 96,000 90,000 54,000 $240,000 Operating Divisions Printer Copier Fax AssetS $ 540,000 810,000 360,000 $1,710,000 Total ATI headquarters has $120,000 of additional cash to invest in one of its divisions. The division managers have identified investment opportunities that are expected to yield the following ROls Divisions Printer Copier Fax Expected ROIs for Additional Investments 14.0% 13.0% 12.0%