Navarre Energy Research specializes in developing and commercializing new products. It is organized into two divisions, which are based on the products they produce. Canal Division is smaller, and the lives of the products it produces tend to be shorter than those produced by the larger Lake Division. Selected financial data for the past year are shown in the following table. Divisional investment is as of the beginning of the year. Navarre uses an 8 percent cost of capital and beginning-of-the-year investment when computing ROI and residual income. Ignore income taxes. Division Canal ($000) Allocated corporate overhead $ 4,100 Cost of goods sold 20,000 Divisional investment 60,100 Lake ($000) $ 9,600 30,000 400,000 R&D 12,000 32,000 Sales 50,000 100,000 Selling, general and administrative 4,500 8,000 (excluding R&D) Required: a. Compute divisional income for the two divisions. b. Calculate the operating margin, which is equivalent to the return on sales, for the two divisions. c. Calculate ROI for the two divisions. d. Compute residual income for the two divisions. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D ences d. Compute residual income for the two divisions. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Compute divisional Income for the two divisions. Note: Enter your answers in thousands of dollars. Divisional income Canal Division Lake Division Required A Required B> ook int d. Compute residual income for the two divisions. Complete this question by entering your answers in the tabs below. ences Required A Required B Required C Required D Calculate the operating margin, which is equivalent to the return on sales, for the two divisions. Note: Enter your answers as a percentage rounded to 2 decimal places (1.e., 32.16). Operating margin Canal Division Lake Division b. Calculate the operating margin, which is equivalent to the return on sales, for the two divisions. c. Calculate ROI for the two divisions. d. Compute residual income for the two divisions. Complete this question by entering your answers in the tabs below. Required A Required B Required Calculate ROI for the two divisions. Required D Note: Enter your answers as a percentage rounded to 2 decimal places (1.e., 32.16). ROI Canal Division Lake Division % a. Compute divisional income for the two divisions. b. Calculate the operating margin, which is equivalent to the return on sales, for the two divisions. c. Calculate ROI for the two divisions. d. Compute residual income for the two divisions. Complete this question by entering your answers in the tabs below. Required A Required B Required C Required D Compute residual income for the two divisions. Note: Enter your answers in thousands of dollars. Negative amounts should be indicated by a minus si Canal Division Lake Division Residual income