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Orange Corp. ties twu drvreurs. Fruit and Fkwer. The folUAMng forma, on for the' pasl year rs av lable lur each dins,un. Fruit Drsian Fower
Orange Corp. ties twu drvreurs. Fruit and Fkwer. The folUAMng "forma, on for the' pasl year rs av lable lur each dins,un. Fruit Drsian Fower Dvision s 700,000 % 1,170,000 5850081.500 292,500 1525,000 Cost of guods sold and operng expernses 195.000 erage imvested asscts Orange has established a hurd e rate of 5 percent. Required: 1 a. Compute cach division's return on nvestmcm RO) and residual ncomc for last year. Enter your ROI answers as a peroentage rounded to two deonnal pla0es, Le., 0.1234 should be entered as 12.34% Res dual Income Loss) 1-b, Determine wich manager seems to be performing better Fruit Division 2.Suppase Orange is Investing in new technolagy that wil Increase each dMsion's operating income by $124,000. The total ivestment required is $1,700.000, which will be spi evenly between the twa divisions Calculate the ROl and return on inwestment for cach dMsion arter the investment made (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) Which manager will accept the inweatmet
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