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Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.26 percent. Selected operating data for the three divisions

Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.26 percent. Selected operating data for the three divisions follow:

Peak View Grand
Sales revenue $ 330,000 $ 238,000 $ 309,000
Cost of goods sold 216,000 112,000 183,000
Miscellaneous operating expenses 37,000 35,000 36,000
Average invested assets 1,360,000 880,000 1,115,000

image text in transcribed

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%.)) image text in transcribed 2. Compute the residual income for each division. (Loss amounts should be indicated by a minus sign. Round your answers to nearest whole dollar.) image text in transcribed

Peak View Grand Sales revenue Cost of goods sold Miscellaneous operating expenses Average invested assets $330,000 $ 238,000 $ 309,000 183,000 36,000 880,000 1,115,000 216,000 37,000 112,000 35,000 1,360,000

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