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Gibson Technologies, Inc. has three divisions. Gibson has a desired rate of return of 12.5 percent. The operating assets and income for each division

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Gibson Technologies, Inc. has three divisions. Gibson has a desired rate of return of 12.5 percent. The operating assets and income for each division are as follows: Divisions Printer Operating Assets $ 620,000 Operating Income $103,540 Copier Fax Total 890,000 440,000 $1,950,000 99,680 62,040 $265,260 Gibson headquarters has $128,000 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: Divisions Printer Expected ROIS for Additional Investments Copier Fax 14.0% 13.0% 12.0% Required a-1. Calculate the ROI for each division. a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $128,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $128,000 of investment funds? d. Which division offers the best investment opportunity for Gibson? g. Calculate the residual income: (1) At the corporate (headquarters) level before the additional investment. (2) At the division level before the additional investment. (3) At the investment level. (4) At the division level after the additional investment. Complete this question by entering your answers in the tabs below. Req A1 Req A2 to D Req G1 Req G2 to G4 Calculate the ROI for each division. (Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) Printer Division Copier Division Fax Division ROI % % % < Req A1 Req A2 to D >

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