Cole Corporation operates three investment centers. The following financial statements apply to the investment center named Morrison Division. | MORRISON DIVISION Income Statement For the Year Ended December 31, 2014 | Sales revenue | $ | 135,000 | | Cost of goods sold | | 78,500 | | | | | | Gross margin | | 56,500 | | Operating expenses | | | | Selling expenses | | (5,000 | ) | Depreciation expense | | (8,000 | ) | | | | | Operating income | | 43,500 | | Nonoperating item | | | | Loss of sale of land | | (15,000 | ) | | | | | Net income | $ | 28,500 | | | | | | | MORRISON DIVISION Balance Sheet As of December 31, 2014 | Assets | | | | Cash | $ | 18,580 | | Accounts receivable | | 42,266 | | Merchandise inventory | | 37,578 | | Equipment less accum. dep. | | 90,258 | | Nonoperating assets | | 9,000 | | | | | | Total assets | $ | 197,682 | | | | | | Liabilities | | | | Accounts payable | $ | 9,637 | | Notes payable | | 72,000 | | Stockholders? equity | | | | Common stock | | 80,000 | | Retained earnings | | 36,045 | | | | | | Total liab. and stk. equity | $ | 197,682 | | | | | | | c. | Calculate the ROI for Morrison. (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).) | Original ROI____% Cole has a desired ROI of 10 percent. Headquarters has $96,000 of funds to assign to its investment centers. The manager of the Morrison Division has an opportunity to invest the funds at an ROI of 12 percent. The other two divisions have investment opportunities that yield only 11 percent. | d. | Calculate the new ROI for Morrison division, if the investment opportunity is adopted by Morrison.(Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45)) | New ROI ____% e-1. | Based on the original data calculate the residual income. (Round your answer to the nearest dollar amount.) | Original Residual Income_____ e-2. | Calculate the new residual income based on information provided in requirement d. (Round your answer to the nearest dollar amount.) | New Residual Income _______ |