Jason Allen, founded by a former vice-president of Blossom Industries, has been manufacturing prefabricated houses for the past five years. To compete with Blossom, Jason also expanded into the precut housing market by acquiring one of its suppliers, Presser Company. After designating Presser as an investment centre, Jason next decided to use the ROI as a performance measure and to give managers bonuses that are partly based on the ROI. Jason defines investments as average productive assets and expects a minimum return of 16% before income taxes. Presser's ROI has averaged 20.5% since it was acquired. In 2022. Presser found an investment opportunity that would have an estimated ROI of 19\%. After analyzing the opportunity, Presser's management finally decided not to make the investment because management did not want the division's overall ROI to decrease. The 2022 income statement for Pres5er follows. The division had operating assets of $23.10 million at the end of 2022 , which was a 5% increase over the 2021 year-end balance. PRESSER DIVISION Income Statement Year Ended June 30,2022 (in thousands) Sales revenue $43,000 Cost of goods sold Grossmargin 14,60028,400 Operating expenses Administrative $3.850 Selling Income from operations before income taxes $4,05910,5416,691 Calculate the following performance measures for 2022 for the Presser division: (1) The return on investment % (2) The residual income