M$10-10($Algo$)$ Impact of New Investment on ROI, Residual Income $[$LO $10-4,10-5]$

The Western Division of Claremont Company had net operating income of $$148,000$ and average invested assets of $$553,000.$

Claremont has a required rate of return of $13\mathrm{.}25$ percent. Western has an opportunity to increase operating income by $$45,000$ with a

$$91,000$ increase in average invested assets.

Compute Western Division's return on investment and residual income currently and if it undertakes the project. $($Enter your ROI

answers as a percentage rounded to two decimal places, $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%).$ Round your Residual Income

$($Loss$)$ answers to the nearest whole dollar.$)$