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PLEASE SHOW ALL WORK. E10-8 Evaluating Managerial Performance Using Return on Investment, Residual Income [LO 10-4,10-5] Luke Company has three divisions: Peak, View, and Grand.

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PLEASE SHOW ALL WORK.

E10-8 Evaluating Managerial Performance Using Return on Investment, Residual Income [LO 10-4,10-5] Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.76 percent. Selected operating data for the three divisions follow: Peak View Sales revenue Cost of goods sold Miscellaneous operating expenses Average invested assets S330,000 230,000 301,000 195,000 32,000 215.0(1) 43,000 11a.(100 40,000 13220 10 9401,150 Required 1. Compute the return on investment for each division. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) 2. Compute the residual income for each division. (Loss amounts should be indicated by a minus sign. Round your answers to nearest whole dollar.)

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