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Flower Division $ Fruit Division $ 1,020,000 765,000 255,000 1,530,000 1,147,500 $ Sales revenue Cost of goods sold and operating expenses Net operating income Average

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Flower Division $ Fruit Division $ 1,020,000 765,000 255,000 1,530,000 1,147,500 $ Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets 382,500 $ $ 2,550,000 2,250,000 Orange has established a hurdle rate of 8 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. 1-b. Determine which manager seems to be performing better. 2. Suppose Orange is Investing in new technology that will increase each division's operating income by $132,000. The total Investment required Is $2,100,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for each divislon after the investment is made. 3. Determine whether both managers will support the Investment Complete this question by entering your answers in the tabs below. Req 1A Req 1B Req 2 Req 3 Compute each division's return on investment (RO1) and residual income for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (.e., 0.1234 should be entered as 12.34%%.)) Frult Division Flower Division RO % % Residual Income (Loss) Reg 18>

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