Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.01 percent. Selected operating data for the three divisions follow:

		Peak		View		Grand
Sales revenue	$	344,000	$	227,000	$	306,000
Cost of goods sold		209,000		113,000		186,000
Miscellaneous operating expenses		44,000		32,000		33,000
Average invested assets		1,200,000		900,000		1,125,000

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