Fanning Corporation operates three investment centers. The following financial statements apply to the investment center named Bowman Division.

BOWMAN DIVISION
Income Statement
For the Year Ended December 31, Year 2
Sales revenue	$	105,680
Cost of goods sold		59,475
Gross margin		46,205
Operating expenses
Selling expenses		(2,690	)
Depreciation expense		(4,085	)
Operating income		39,430
Nonoperating item
Loss on sale of land		(4,200	)
Net income	$	35,230

BOWMAN DIVISION
Balance Sheet
As of December 31, Year 2
Assets
Cash	$	12,632
Accounts receivable		40,396
Merchandise inventory		36,900
Equipment less accumulated depreciation		90,338
Nonoperating assets		9,500
Total assets	$	189,766
Liabilities
Accounts payable	$	9,547
Notes payable		67,000
Stockholders equity
Common stock		77,000
Retained earnings		36,219
Total liabilities and stockholder's equity	$	189,766

Based on the original data, calculate the original residual income. Also, calculate the new residual income based on information provided in Requirement d.

(requirement d: Fanning has a desired ROI of 11 percent. Headquarters has $87,000 of funds to assign to its investment centers. The manager of the Bowman Division has an opportunity to invest the funds at an ROI of 13 percent. The other two divisions have investment opportunities that yield only 12 percent. Calculate the new ROI for Bowman division, if the investment opportunity is adopted by Bowman. (Round your answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).)