Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.51 percent. Selected operating data for the three divisions follow: Peak View Grand Sales revenue $ 337,000 $ 232,000 $ 310,000 Cost of goods sold 199,000 121,000 184,000 Miscellaneous operating expenses 41,000 38,000 38,000 Average invested assets 1,320,000 950,000 1,195,000 Required: 1. Compute the return on investment for each division. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) 2. Compute the residual income for each division. (Loss amounts should be indicated by a minus sign. Round your answers to nearest whole dollar.)

Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.51 percent. Selected operating data for the three divisions follow: View S 337,000 $ 232,000 310,000 121,000 Peak Grand Sales revenue Cost of goods sold Miscellaneous operating expenses Average invested assets 199,000 41,000 184,000 38,000 950,000 119 38,000 1,320,000 1,195,000 Required 1. Compute the return on investment for each division. Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%) Peak View Grand Return on Investment 2. Compute the residual income for each division. (Loss amounts should be indicated by a minus sign. Round your answers to nearest whole dollar.) Peak View Grand Residual Income (Loss)