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Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.01 percent. Selected operating data for the three divisions

Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.01 percent. Selected operating data for the three divisions follow:

Peak View Grand
Sales revenue $ 328,000 $ 229,000 $ 306,000
Cost of goods sold 215,000 113,000 193,000
Miscellaneous operating expenses 45,000 34,000 40,000
Average invested assets 1,240,000 900,000 1,225,000

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)

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