Hoffman Ceramics, a division of Samson Corporation, has an operating income of $85,000 and total assets of $425,000. The required rate of return for the company is 11%. The company is evaluating whether should use return on investment (ROI) or residual income (RI) as a measurement of performance for its division managers. The manager of Hoffman Ceramics has the opportunity to undertake a new project the will require an investment of $175,000. This investment would earn $24,500 for the company. Read the requirements. Requirement 1. What is the original return on investment (ROI) for Hoffman Ceramics (before making any additional investment)? First determine the formula to calculate the ROI. Operating income Total assets = ROI (Enter the percentage to two decimal places.) The original return on investment (ROI) for Hoffman Ceramics is % Requirement 2. What would the ROI be for Hoffman Ceramics if this investment opportunity were undertaken? Would the manager of the Hoffman Ceramics division want to make this investment if she were evaluated based on ROl? Why or why not? (Enter the percentage to two decimal places.) If this investment opportunity were undertaken, the ROI would be Requirements 1. What is the original return on investment (ROI) for Hoffman Ceramics (before making any additional investment)? 2. What would the ROI be for Hoffman Ceramics if this investment opportunity were undertaken? Would the manager of the Hoffman Ceramics division want to make this investment if she were evaluated based on ROI? Why or why not? 3. What is the ROI of the investment opportunity? Would the investment be desirable from the standpoint of Samson Corporation? Why or why not? Get more help 4. What would the residual income (RI) be for Hoffman Ceramics if this investment opportunity were to be undertaken? Would the manager of the Hoffman Ceramics division want to make this investment if she were evaluated based on Rl? Why or why not? 5. What is the RI of the investment opportunity? Would the investment be desirable from the standpoint of Samson Corporation? Why or why not? 6. Which performance measurement method. ROI or RI. promotes aoal conaruence? Whv