Household Professional Division Division Total Sales Variable costs $90,000,000 $7,000,000 $97,000,000 75,000,000 Contribution margin $15,000,000 5,500,000 $1,500,000 80,500,000 $16,500,000 Divisional fixed costs 13,000,000 700,000 13,700,000 Division margin $ 2,000,000 $ 800,000 Allocated corporate-level fixed costs 1,500,000 900,000 Net income (loss) $ $ 2,800,000 500,000 $ (100,000) $ 400,000 2,400,000 The company's January 1, 2021 balance sheet is below: Household Division Professional Corporate Division Level Total Cash Accounts Receivable $ 1,800,000 $ 140,000 7,500,000 600,000 Inventory Plant and Equipment net Total Assets 6,250,000 1,000,000 2,000,000 1,000,000 $17,550,000 $ 2,740,000 $ $ 1,940,000 8,100,000 7,250,000 3,000,000 $20,290,000 Accounts Payable $ 6,250,000 $ 460,000 $ 6,710,000 Long Term Debt $3,580,000 3,580,000 Shareholder equity 10,000,000 10,000,000 Total Liabilities and Stockholder Equity $ 6,250,000 $ 460,000 $13,580,000 $20,290,000 For simplicity, assume that the company's December 31, 2021 balance sheet is expected to be exactly the same as the January 1, 2021 balance sheet. The company uses a company-wide required annual rate of return of 15%. Early in 2021, an internal consulting project identified identical cost-reduction opportunities at both divisions. For each division, this would require a one-time investment of $180,000; annual cost reduction at each division would equal $40,000. 3. The company is considering changing divisional managers' incentive plans. If the changes are made, top manager of each division would be compensated based on divisional residual income (instead of divisional ROI). Each division's residual income would be computed using that division's Division margin and divisional net assets, including Cash. What is the Household Division's estimated 2021 residual income? What is the Professional Division's estimated 2021 residual income