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Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.76 percent. Selected operating data for the three divisions
Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.76 percent. Selected operating data for the three divisions follow: Sales revenue Grand Cost of goods sold. Miscellaneous operating expenses Average invested assets Peak View $ 337,000 $236,000 $ 304,000 213,000 108,000. 43,000 1,370,000 37,000 960,000 186,000 37,000 1,175,000 Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the return on investment for each division. (Enter your ROI answers as a percentage rounded to two decimal places, (1.., 0.1234 should be entered as 12.34%. ) ) Return on Investment Peak View Grand Required 2 > Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.76 percent. Selected operating data for the three divisions follow: Sales revenue Peak: View Grand Cost of goods sold Miscellaneous operating expenses Average invested assets $ 337,000 $236,000 $ 304,000 213,000 108,000 43,000 1,370,000 37,000 960,000 186,000) 37,000 1,175,000 Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the residual income for each division. (Loss amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to nearest whole dollar.) Residual Income (Loss) Peak View
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