Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division:

	Fruit Division			Flower Division
Sales revenue		$660,000			$990,000
Cost of goods sold and operating expenses		495,000			742,500
Net operating income		$165,000			$247,500
Average invested assets		$2,062,500			$1,375,000

Orange has established a hurdle rate of 5 percent. Required: 1. Compute each divisions return on investment (ROI) and residual income for last year. 2. Suppose Orange is investing in new technology that will increase each divisions operating income by $120,000. The total investment required is $1,500,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for each division after the investment is made. Enter ROI as a percentage rounded to 2 decimal places.