Tree Cutting Division earned $$1,203,600$ on operating assets of $$6,800,000.$ Zachary has offered the Tree Cutting Division $$2,220,000$ of additional operating assets. The manager of the Tree Cutting Division believes he could use the additional assets to generate operating income amounting to $$450,660.$ Zachary has a desired return on investment $($ROI$)$ of $8\mathrm{.}60$ percent.

Required

Calculate the return on investment for Zachary, the Tree Cutting Division, and the additional investment opportunity.

Calculate the residual income for Zachary, the Tree Cutting Division, and the additional investment opportunity.