Perez Corporation operates three investment centers. The following financial statements apply to the investment center named Bowman Division:

BOWMAN DIVISION
Income Statement
For the Year Ended December 31, 2018
Sales revenue	$	106,780
Cost of goods sold		58,675
Gross margin		48,105
Operating expenses
Selling expenses		(2,680	)
Depreciation expense		(4,175	)
Operating income		41,250
Nonoperating item
Loss of sale of land		(3,300	)
Net income	$	37,950

BOWMAN DIVISION
Balance Sheet
As of December 31, 2018
Assets
Cash	$	12,472
Accounts receivable		40,396
Merchandise inventory		36,700
Equipment less accumulated depreciation		90,358
Nonoperating assets		9,700
Total assets	$	189,626
Liabilities
Accounts payable	$	9,467
Notes payable		70,000
Stockholders equity
Common stock		72,000
Retained earnings		38,159
Total liabilities and stockholder's equity	$	189,626

Required

3. Calculate the ROI for Bowman.

4. Perez has a desired ROI of 13 percent. Headquarters has $91,000 of funds to assign to its investment centers. The manager of the Bowman Division has an opportunity to invest the funds at an ROI of 15 percent. The other two divisions have investment opportunities that yield only 14 percent. Calculate the new ROI for Bowman division, if the investment opportunity is adopted by Bowman.

5. Based on the original data, calculate the original residual income. Also, calculate the new residual income based on information provided in Requirement d.

Complete this question by entering your answers in the tabs below. Required C Required D Required E Calculate the ROI for Bowman. (Round your answer to 2 decimal places. (i.e., .2345 should be entered as 23.45).) ROI