The following Information is available about the status and operations of Zamia Company, which has a minimum required ROI of 15%

	Division A	Division B
Divisional Investment	500,000	1,500,000
Divisional Profit	150,000	540,000
Divisional Sales	1,000,000	3,600.000

Required:

a. Compute ROI for division A

b. Compute residual income for division B.

c. Division A could increase its profit by $40,000 by increasing its investment by 150,000. Compute its total residual income.

d. Division A could increase its return on sales by one percentage point, while keeping the same total sales and investment. Compute its ROI.

e. Division B could reduce its investment so that its asset turnover increased by one time, while holding total sales constant. Compute its ROI