The ArtMart Company has three divisions: X Division, Y Division, and Z Division. Operating results for the three divisions for last year were as follows:

	Div X				Div Y				Div Z
Residual income	$	98,400			$	27,200			$	2,000
Net operating income		188,600				115,600				66,000
Average operating assets		820,000				680,000				400,000
Sales		1,640,000				1,445,000				1,040,000
Profit margin		11.5	%			8.0	%			5.0	%

Corporate headquarters is offering an investment opportunity to each of the divisions. The opportunity will yield an operating income of $35,000, based on an average operating investment of $246,000. Required: a. If the divisions are being evaluated using return on investment (ROI), what will be the decision (accept or reject) of each division regarding this opportunity? Support your answer with the appropriate calculations. b. If the divisions are being evaluated using residual income, what will be the decision (accept or reject) of each division regarding this opportunity? Support your answer with the appropriate calculations.