East Division West Division Central Division Sales $2,000,000 $4,000,000 $3,500,000 Cost of Goods Sold $800,000 $2,040,000 $1,820,000 Allocated Overhead $600,000 $1,200,000 $1,030,000 Selling and Administrative $360,000 $400,000 $240,000 Average Assets $1,800,000 $2,600,000 $1,400,000 Cost of capital is 10% and these are all considered investment centers and we will ignore taxes.Which of the following would be true with regard to the West Division residual income if the cost of capital increased to 12% and all else stayed the same O 1) Residual income would decrease by $52,000 2) Residual income would increase by $52,000 3) Residual income would increase but by what amount is uncertain. O 4) Residual income would be less than zero\fReturn on investment for the Central Division would be closest to? l/\\l w 1] 29% l/\\l L, 2] 15% l/\\l v 31 45% I/\\| \\_/ 4] 22%