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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

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-a. Compute each divisions 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)

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