E10-23A (similar to) Question Help Rouse Ceramics, a division of Kerwin Corporation, has an operating income of $82,000 and total assets of $410,000. The required rate of return for the company is 12%. The company is evaluating whether it should use return on investment (ROI) or residual income (RI) as a measurement of performance for its division managers. The manager of Rouse Ceramics has the opportunity to undertake a new project that will require an investment of $164,000. This investment would earn $21,320 for the company. Read the requirements. Requirement 1. What is the original return on investment (ROI) for Rouse Ceramics (before making any additional investment)? First determine the formula to calculate the ROI. Operating income Total assets ROI (Enter the percentage to two decimal places.) The original return on investment (ROI) for Rouse Ceramics is 20 %. Requirement 2. What would the ROI be for Rouse Ceramics if this investment opportunity were undertaken? Would the manager of the Rouse Ceramics division want to make this investment if she were evaluated based on ROI? Why or why not? (Enter the percentage to two decimal places.) If this investment opportunity were undertaken, the ROI would be % Enter any number in the edit fields and then click Check Answer. ? parts remaining Clear All Check