Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 7.01 percent. Selected operating data for the three divisions follow: Peak $ 339,000 197,000 37,000 1,290,000 Sales revenue Cost of goods sold Miscellaneous operating expenses Average invested assets Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division. View $ 235,000 110,000 31,000 920,000 Grand $ 318,000 188,000 38,000 1,105,000

Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 7.01 percent. Selected operating data for the three divisions follow: Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division. Complete this question by entering your answers in the tabs below. Compute the return on investment for each division. Note: Enter your ROI answers as a percentage rounded to two decimal places, (1.e, 0.1234 should be entered as 12.34%.) Complete this question by entering your answers in the tabs below. Compute the residual income for each division. Note: Loss amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to nearest whole dollar