ROI and Residual Income:Basic Computations Watkins Associated Industries is a highly diversified company with three divisions: Trucking, Seafood, and Construction. Assume that the company uses return on investment and residual income as two of the evaluation tools for division managers. The company has a minimum desired rate of return on investment of 10 percent with a 30 percent tax rate. Selected operating data for three divisions of the company follow. Trucking Division Seafood Division Construction Division Sales Operating assets Net operating income $1,300,000 650,000 $870,000 290,000 101,000 52,000 $900,000 360,000 62,000 (a) Compute the return on investment for each division. (Round answers to three decimal places.) Trucking ROI = 0 Seafood ROI = 0 Construction ROI = 0 (b) Compute the residual income for each division. Residual Income Trucking Seafood Net operating income $ 101000 $ 52000 $ Construction 900000 x Minimum level 0 x 0 x 0 x Residual income $ 0 x $ 0 x $ x