Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of $5\mathrm{.}76$ percent. Selected operating data for the three divisions follow:

Peak View Grand

Sales revenue $ $333,000$ $ $222,000$ $ $299,000$

Cost of goods sold $211,000108,000183,000$

Miscellaneous operating expenses $37,00033,00034,000$

Average invested assets $1,220,000930,0001,075,000$

Required:

Compute the return on investment for each division.

Compute the residual income for each division.