Return on Investment and Investment Decisions Leslie Blandings, division manager of Audiotech Inc., was debating the merits of a new product-a weather radio that would put out a warning if the county in which the listener lived were under a severe thunderstorm or tornado alert. The budgeted income of the division was $725,000 with operating assets of $5,425,000. The proposed investment would add income of $640,000 and would require an additional Investment in equipment of $4,000,000. The minimum required return on investment for the company is 13% Required: 96 9 96 1. Compute the ROI of the following (round to the nearest whole percent) a. The division of the radio project is not undertaken. b. The radio project alone. c. The division if the radio project is undertaken. 2. Compute the residual income of the following: a. The division if the radio project is not undertaken. b. The radio project alone. C. The division if the radio project is undertaken. Return on Investment, Margin, Turnover Data follow for the Consumer Products Division of Kisler Inc.: Year 1 Year 2 Sales $9,210,000 $7,940,000 Operating income 517,602 307,278 Average operating assets 18,058,824 17,644,444 Required: 1. Compute the margin (as a percent) and turnover ratios for each year. Round your answers to two decimal places. Year 1 Year 2 Margin % %% Turnover 2. Compute the ROI for the Construction Division for each year Note: Enter percentage to two decimal places. ROI year 1 % RI year 2 %