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Rundle Technologies, Inc. has three divisions. Rundle has a desired rate of return of 12.0 percent. The operating assets and income for each division are

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Rundle Technologies, Inc. has three divisions. Rundle has a desired rate of return of 12.0 percent. The operating assets and income for each division are as follows: Operating Divisions Printer Copier Operating Income $107,580 100,440 65,760 Assets $660,000 930,000 48,80e $2,078,000 Total $273,78 Rundle headquarters has $132,000 of additional cash to invest in one of its divisions. The division managers have identified investment opportunities that are expected to yield the following ROls: Divisions Printer Copier Expected ROIs for Additional Investments 13.5% 12.5% 11.5% g. Calculate the residual income: (1) At the corporate (headquarters) level before the additional investment. (2) At the division level before the additional investment. (3) At the investment level. (4) At the division level after the additional investment. Calculate the residual income: (Loss amounts should be indicated by a minus sign.) (2) At the division level before the additional investment. (3) At the investment level (4) At the division level after the additional investment Show less Residual Incom (loss) (2) Printer division Copier division Fax division (3) Printer division Copier division Fax division (4) Printer division Copier division Fax division

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