Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.76 percent. Selected operating data for the three divisions follow:

		Peak		View		Grand
Sales revenue	$	342,000	$	238,000	$	306,000
Cost of goods sold		205,000		113,000		182,000
Miscellaneous operating expenses		44,000		31,000		37,000
Average invested assets		1,350,000		940,000		1,025,000

Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division.