Watkins Associated Industries is a highly diversified company with three divisions: Trucking Seafood, and Construction. Assume that the company uses return on investment and residual income as two of the evaluation tools for division managers. The company has a minimum desired rate of return on investment of 15 percent with a 30 percent tax rate. Selected operating data for three divisions of the company follow. Trucking Division Seafood Division Construction Division Sales $ 1.250,000 $800,000 $950,000 Operating assets 300,000 400,000 Net operating income 146.250 52,800 79,600 650.000 (a) Compute the return on investment for each division (Round answers to three decimal places.) Trucking ROI 19.333 x Seafood ROI 26.4 Construction ROI 18 M (b) Compute the residual income for each division Residual income Trucking Seafood Construction Net operating income 67,900 KS 37.100 M 38.500 X Minimum level 42.000 W 18.900 X 23.800 Residual income 25,900 X 14.700 W 18.200 X 10 w