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Saved Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.51 percent. Selected operating data for the three
Saved Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.51 percent. Selected operating data for the three divisions follow: $ Sales revenue Cost of goods sold Miscellaneous operating expenses Average invested assets Peak View 340,000 $ 230,000 $ 202,000 105,000 35,000 38,000 1,260,000 880,000 Grand 303,000 192,000 36,000 1,155,000 Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the return on investment for each division. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) Peak View Grand Return on investment Required 2 > Savod Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6.51 percent. Selected operating data for the three divisions follow: $ Sales revenue Cost of goods sold Miscellaneous operating expenses Average invested assets Peak View Grand 340,000 $ 230,000 $ 303,000 202,000 105,000 192,000 35,000 38,000 36,000 1,260,000 880,000 1,155,000 Required: 1. Compute the return on investment for each division 2. Compute the residual income for each division Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the residual income for each division. (Loss amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to nearest whole dollar. Peak View Grand Residual income (Loss)
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