During the past week, management of the company's Northeast Division was approached about the possibility of buying a competitor that had decided to redirect its retail activities of the competitors acquired, it will be acquired at its book value) The data that follow relate to recent performance of the Northeast Division and the competitor Sales Variable costs nd costs Invested capital Northeast Division $4,320,000 75% of sales $583,000 1 965,000 Competitor 32,720,000 70% of wales $ 74,000 S300.00 Management has determined that in order to upgrade the competitor to Megatronics' standards, an additional $180,000 of invested capital would be needed Required: 1. Compute the current ROI of the Northeast Division and the division's Rolf the competitor is acquired 2. If divisional management is being evaluated on the basis of ROI, will the Northeast Division likely pursue acquisition of the competitor? 3-6. Compute the ROI of the competitor as it is now and after the intended upgrade 3.b. If ROIS used as the basis for evaluation would Megatronics Corporation likely be in favor of the acquisition of the competitor? 4. Calculate the Northeast Division's ROI after acquisition of competitor but before upgrading 5-6. Assume that Megatronics uses residual income to evaluate performance and desires a 12 percentium return on invested capital Compute the current residual income of the Northeast Division and the division's residual income if the competitor is acquired 5-b. if divisional management is being evaluated on the basis of residual income, will the Northeast Division Wely pursue acquisition of the competitor? Complete this question by entering your answers in the tabs below. Rea 1 MA Reg 4 Rec SA Rese Compute the current Rot of the Northeast Division and the division's Roll the competitor is squired. (Round your answers to 2 decimal places....1334 should be entered as 1234) Cunun ROI BOS competed Her >