Electromart is a retailer of electrical products and has four divisions. The four divisional managers are evaluated at the end of each year, and bonuses are awarded based on ROI. Last year, the company as a whole produced an ROI of 13 per cent. During the past week, management of the company's Little River division was approached about the possibility of buying the operations of a competitor, Big River, which wished to cease its retail operations. The following data relate to a recent performance of the Little River division and Big River. Little River Big River Sales $8,400,000 $5,200,000 Variable costs 70% of sales 65% of sales Fixed costs $2,150,000 $1,670,000 Invested capital $1,850,000 $625,000 If the acquisition occurs, the operations of Big River will be absorbed into the Little River division. The operations of Big River will need to be upgraded to meet the high standards of Electromart, which would require an additional $375,000 of invested capital. Required: a) Calculate the current ROI of the Little River division and the ROI of the division if Big River is acquired (4 Marks)