Required information Problem 14-63, 14-64 (Algo) (LO 14-1, 2, 3, 4) Bentler Industries provides high-technology navigation and communication equipment for the aerospace and shipbuilding industries. It is organized into two divisions, Aeronautics and Marine. The division presidents are given wide decision- making authority that covers operations, marketing, and asset acquisition and disposal. Bentler evaluates the division presidents on, among other things, ROI in their respective divisions. ROI is based on after-tax divisional income and beginning-of-year assets. Divisional income includes allocated corporate overhead. For the most recent year (year 3), data from the two divisions shows the following: Allocated corporate overhead ($000) Cost of sales Other general and administrative costs R&D costs Sales Aeronautics Division $ 16,300 21,300 1,090 Marine Division $ 15,500 14,900 2,550 18,900 6,300 60,600 56,000 28,700 47,950 The tax rate applied at Bentler is 20 percent. Total assets (January 1,Year 3) Problem 14-63 (Algo) Divisional Income, ROI, and Residual Income (LO 14-1, 2, 3) Required: a. Compute divisional income for year 3 for each of the divisions. b1. Evaluate the two divisions based on the information from the divisional income computed. b2. In terms of divisional income, which division performed better? c1. Compute ROI for year 3 for each of the divisions. c2. Which division performed better? d1. Compute residual income for year 3 for each of the divisions. Bentler uses a cost of capital of 12 percent. d2. Which division performed better? Required: a. Compute divisional income for year 3 for each of the divisions. b1. Evaluate the two divisions based on the information from the divisional income computed. b2. In terms of divisional income, which division performed better? c1. Compute ROI for year 3 for each of the divisions. c2. Which division performed better? d1. Compute residual income for year 3 for each of the divisions. Bentler uses a cost of capital of 12 percent. d2. Which division performed better? Complete this question by entering your answers in the tabs below. Req A Req B1 Req B2 Req C1 Req C2 Req D1 Req D2 Evaluate the two divisions based on the information from the divisional income computed. Note: Enter your answers as a percentage rounded to 2 decimal places (i.e., 32.12). Gross margin Operating margin Profit margin Aeronautics Division Marine Division % % % % % % < Req A Req B2 >