Mile One Winery Ltd. expects its divisions to earn a minimum rate of return of 14%. One of its divisions, Ros Wines, is an investment centre that harvests, ferments and bottles the types of wine needed to make ros. The division has average operating assets of 2,520,000 and achieved the following results in the current year: Ros Wines Income Statement Sales $540,000 Operating expenses: 200,000 Net operating income 340,000 Required: a) Calculate the return on investment for Ros Wines division for the current year. (1 mark) b) How might the division improve its return on investment? Consider the two components of calculating the return on investment (1 mark) Calculate the residual income for the Ros Wines division for the current year. (2 marks) d) An investment opportunity is available to Ros Wines that would require an investment of $400,000 in new average operating assets and earn net operating income of $65,000. Would the management of Rose Wines likely accept the investment opportunity if they are evaluated based on return on investment of the division? Show calculations and explain. (2 marks) ) Would the management of Bottling likely accept the investment opportunity if they are evaluated based on residual income? Show calculations and explain (2 marks)