Pg3

Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.51 percent. Selected operating data for the three divisions follow: Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division. Complete this question by entering your answers in the tabs below. Compute the return on investment for each division. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.) Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 5.51 percent. Selected operating data for the three divisions follow: Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division. Complete this question by entering your answers in the tabs below. Compute the residual income for each division. Note: Loss amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to nearest whole dollar