Gibson Home Maintenance Company earned operating income of $$6,574,400$ on operating assets of $$58,700,000$ during Year $2.$ The

Tree Cutting Division earned $$1,091,580$ on operating assets of $$6,780,000.$ Gibson has offered the Tree Cutting Division $$2,140,000$ of

additional operating assets. The manager of the Tree Cutting Divislon believes he could use the additional assets to generate

operating income amounting to $$423,720.$ Glbson has a desired return on investment $($ROl$)$ of $9\mathrm{.}20$ percent.

Required

a$.$ Calculate the return on investment for Gibson, the Tree Cutting Division, and the additional investment opportunity.

b$.$ Calculate the residual income for Gibson, the Tree Cutting Division, and the additional investment opportunity.

Complete this question by entering your answers in the tabs below.

Calculate the return on investment for Gibson, the Tree Cutting Division, and the additional investment opportunity.

Calculate the retum on imvestment for Gibson, the Tree Cutting Division, $2$ decimal places. $(1.$e$.,0\mathrm{.}2345$ should be entered as $23\mathrm{.}45).$