Ready Products Incorporated operates two divisions, each with its own manufacturing facility. The accounting system reports the following data for $2022$:

HEALTH CARE PRODUCTS DIVISION

Income Statement

For the Year Ended December $31,2022$

Revenues $ $600,000$

Operating costs $470,000$

Operating income $ $130,000$

COSMETICS DIVISION

Income Statement

For the Year Ended December $31,2022$

Revenues $ $600,000$

Operating costs $400,000$

Operating income $ $200,000$

Ready estimates the useful life of each manufacturing facility to be $15$ years. As of the end of $2022,$ 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 $15$ years with no salvage value. The company uses straight$-$line depreciation and the depreciation charge is $$70,000$ per year for each division. The manufacturing facility is the only long$-$lived asset of either division. Current assets are $$300,000$ 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:

Year Cost Index Replacement Cost Liquidation Value

Health Care Cosmetics

$201680$ $ $1,000,000$ $ $800,000$ $ $800,000$

$2017821,000,000800,000800,000$

$2018841,100,000700,000700,000$

$2019891,150,000600,000700,000$

$2020941,200,000600,000800,000$

$2021961,250,000600,000900,000$

$20221001,300,000500,0001,000,000$

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$.$ GBV 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.$)$

c$.$ 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.