Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Fruit Division Flower Division S 1,320,000 1,980,000 1,485,000 495,000 990,000 330,000 S S 5,000,000 1,980,000 Orange has established a hurdle rate of 5 percent. Required 1-a. Compute each division's return on investment (ROI) and residual income for last year. (Enter your ROI answers as a percentage rounded to two decimal places, i.e., 0.1234 should be entered as 12.34%-)) Fruit Division Flower Division ROI Residual Income (Loss) 1-b. Determine which manager seems to be performing better Flower Division Fruit Division 2. Suppose Orange is investing in new technology that will increase each division's operating income by $142,000. The total investment required is $2,100,000, which will be split evenly between the two divisions. Calculate the ROI and return on investment for each division after the investment is made. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) Fruit Division Flower Division ROI Residual Income (Loss) 3. Which manager will accept the investment. Fruit Division Manager Flower Division Manager Shaw is a lumber company hat also manu actures custom cabinet t is made up of two divisions: Lumber and Cabinet The ur er vision s responsible or a ve n and prepa n umber or, use the Cabinetry Division produces custom-ordered cabinetry. The lumber produced by the Lumber Division has a variable cost of $2.20 per linear foot and full cost of $3.20. Comparable quality wood sells on the open market for $6.60 per linear foot. (Enter your answers to 2 decimal places.) Required: 1. Assume you are the manager of the Cabinetry Division. Determine the maximum amount you would pay for lumber. Price 2. Assume you are the manager of the Lumber Division. Determine the minimum amount you would charge for the lumber if you have excess capacity. Repeat assuming you have no excess capacity Minimum Price with Excess Capacity Minimum Price without Excess Capacity 3. Assume you are the president of Shaw Determine a mutually beneficial transfer price assuming there is excess capaci . ly Beneficial Transfer Price