Fanning Technologies, Inc. has three divisions. Fanning has a desired rate of return of 12.5 percent. The operating assets and income for each division are as follows:

Divisions	Operating Assets				Operating Income
Printer	$	590,000			$	100,890
Copier		860,000				98,900
Fax		410,000				59,040
Total	$	1,860,000			$	258,830

Fanning headquarters has $125,000 of additional cash to invest in one of its divisions. The division managers have identified investment opportunities that are expected to yield the following ROIs:

	Expected ROIs for
Divisions	Additional Investments
Printer	14.0	%
Copier	13.0	%
Fax	12.0	%

Required

1. g. Calculate the residual income:

1. (1) At the corporate (headquarters) level before the additional investment.

2. (2) At the division level before the additional investment.

3. (3) At the investment level.

4. (4) At the division level after the additional investment.

   1. 

Residual income Residual Income (loss) (2) Printer division Copier division Fax division (3) Printer division Copier division Fax division (4) Printer division Copier division Fax division