Safety Products Inc. The company has multiple product divisions. The information for one of the divisions is given below for 2019. Division Gloves Sales 650,000 Variable Expenses 422,500 Contribution Margin 227,500 Fixed Expenses 120,000 Operating income 107,500 The divisions' performance is measured as an investment center. During 2019: . Sales did not meet expectations and inventory built up. An older piece of manufacturing equipment was replaced late in the year with a new automated machine. The new equipment had a purchase price of $150,000 more than the old equipment and is included in the year end asset balance. Corporate Return Target Residual Income Target 15.0% 25,000 $ Operating assets is defined to include inventory and fixed assets at cost. Operating Assets - at Year End Dec-17 Dec-18 Dec-19 Inventory $ 200,000 $ 200,000 $ 300,000 Plant and Equipment - at cost 500,000 $ 500,000 $ 650,000 $ Required: 1. Prepare the Return on Investment including Margin and Turnover calculations for 2019. Prepare the Residual Income calculations for 2019. Did the division meet the corporate targets? Explain. The division management would like to determine if they will achieve their operating profit targets for 2020. There is no planned change to the operating assets for 2020 from the 2019 year end balances. The new equipment is more efficient and will reduce total variable expenses by 20% for 2020 and will be in operation for the entire year. Fixed expenses (depreciation) will rise in 2020 by $20,000 because of the new equipment. 2. Assuming no other changes in sales, expenses or operating assets, will the division meet the corporate return targets in 2020? Provide the ROI and RI calculations