Ready Products Inc. operates two divisions, each with its own manufacturing facility. The accounting system reports the following data for 2019 HEALTH CARE PRODUCTS DIVISION Incone Statenent For the Year Ended Decenber 31, 2819 1990s) Revenues $2,488 Operating costs 1,378 Operating incone $1,038 COSMETICS DIVISION Incone Statement For the Year Ended Decenber 31, 2819 (6005) Revenues $1,688 Operating costs 828 Operating income $ 868 Ready estimates the useful life of each manufacturing facility to be 21 years. As of the end of 2019, the plant for the health care division is 4 years old, while the manufacturing plant for the cosmetics division is 6 years old. Each plant had the same cost at the time of purchase, and both have useful lives of 21 years with no salvage value. The company uses straight-line depreciation and the depreciation charge is $118,000 per year for each division. The manufacturing facility is the only long-lived asset of either division. Current assets are $336,000 in each division. An index of construction costs, replacement costs, and liquidation values for the manufacturing facilities for the period that Ready has been operating is as follows: - Liquidation value Year Cast Index Replacement Cost Health Care Cosmetics 2013 88 $ 180,000 $800,000 $898,000 2014 BZ 190.000 800,000 808,00 2015 84 1,100, GDR 600,000 608,009 2016 89 1,150,60 600,000 700,000 2017 94 1.200.000 700,000 800,000 2018 96 1,250,00 780,000 800.PA 2019 180 1,300,000 688,888 908,8 Required: (Round your answers to 2 decimal places.) 1. Compute return on investment (ROI) for each division using the historical cost of divisional assets (including current assets) as the investment base. 2. Compute ROI for each division, Incorporating current-cost estimates as follows: A. Gross book value (GBV) of long-lived assets plus book value of current assets. ( b. GEV of long-lived assets restated to current cost using the index of construction costs plus book value of current assets. (Do not round intermediate calculations. Round dollar values to the nearest whole dollar.) Net book value (NBV) of long-lived assets restated to current cost using the index of construction costs plus book value of current assets. (Do not round Intermediate calculations. Round dollar values to the nearest whole dollar.) d. Current replacement cost of long-lived assets plus book value of current assets. e. Current liquidation value of long-lived assets plus book value of current Assets. 1 1. Return on investment based on historical cost of divisional assets Health Care Cosmetics 1%