Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of $5\mathrm{.}26$ percent. Selected operating data for the three divisions follow:

Peak View Grand

Sales revenue $ $337,000$ $ $225,000$ $ $303,000$

Cost of goods sold $205,000106,000193,000$

Miscellaneous operating expenses $45,00035,00036,000$

Average invested assets $1,290,000970,0001,075,000$

Required:

Compute the return on investment for each division.

Compute the residual income for each division.