Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of $7\mathrm{.}01$ percent. Selected operating data for the three divisions follow:

Peak View Grand

Sales revenue $ $332,000$ $ $229,000$ $ $315,000$

Cost of goods sold $205,000104,000199,000$

Miscellaneous operating expenses $38,00034,00036,000$

Average invested assets $1,230,000910,0001,035,000$

Required:

Compute the return on investment for each division.

Compute the residual income for each division.