principles of managerial accounting

Perez Home Maintenance Company earned operating income of $6,237,000 on operating assets of $59,400,000 during Year 2. The Tree Cutting Division earned $1,178,190 on operating assets of $6,890,000. Perez has offered the Tree Cutting Division $2,090,000 of additional operating assets. The manager of the Tree Cutting Division believes he could use the additional assets to generate operating income amounting to $407,550. Perez has a desired return on Investment (ROI) of 8.50 percent. Required a. Calculate the return on investment for Perez, the Tree Cutting Division, and the additional investment opportunity. b. Calculate the residual income for Perez, the Tree Cutting Division, and the additional investment opportunity. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the return on investment for Perez, the Tree Cutting Division, and the additional Investment opportunity. (Round your answers to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).) Return on Investment Perez Home Maintenance Company Tree Cutting Division Additional investment opportunity Required B >