Franklin 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 $ $106,080$

Cost of goods sold $58,975$

Gross margin $47,105$

Operating expenses

Selling expenses $(2,640)$

Depreciation expense $(4,185)$

Operating income $40,280$

Nonoperating item

Loss on sale of land $(3,100)$

Net income $ $37,180$

BOWMAN DIVISION

Balance Sheet

As of December $31,$ Year $2$

Assets

Cash $ $12,542$

Accounts receivable $40,366$

Merchandise inventory $36,800$

Equipment less accumulated depreciation $90,338$

Nonoperating assets $9,100$

Total assets $ $189,146$

Liabilities

Accounts payable $ $9,607$

Notes payable $62,000$

Stockholders$$ equity

Common stock $78,000$

Retained earnings $39,539$

Total liabilities and stockholder's equity $ $189,146$

Required

Calculate the ROI for Bowman.

Franklin has a desired ROI of $15$ percent. Headquarters has $$92,000$ 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 $17$ percent. The other two divisions have investment opportunities that yield only $16$ percent. Calculate the new ROI for Bowman division, if the investment opportunity is adopted by Bowman.

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