QUESTION 3 Compute the Return on Investment (ROI) and Residual Income The following data pertain to the Glengarry Division of Brown Company: Divisional contribution margin Profit margin controllable by the divisional nanager Profit margin traceable to the division Average asset investment $ 700,000 320,000 294,400 1,280,000 The company uses responsibility accounting concepts when evaluating performance, and Glengarry's division manager is contemplating the following three investments. He can invest up to $400,000 Cost Expected income No. 1 No. 2 $250,000 $300,000 50,000 54,000 No. 3 $400,000 96,000 Required: A. Calculate the ROls of the three investments. B. Which of the three investments would be selected if the manager's focus is on Glengarry's divisional performance? Why? quired: A. Calculate the ROls of the three investments. B. Which of the three investments would be selected if the manager's focus i on Glengarry's divisional performance? Why? C. If Brown has an imputed interest charge of 22%, compute the residual income of investment no. 3. Is this investment attractive from Glengarry's perspective? From Brown's perspective? Why