Watkins Associated Industries is a privately held conglomerate. 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%. Selected operating data for three of the divisions of the company follow.

	Trucking Division	Seafood Division	Construction Division
Sales	$6,450,000	$1,845,000	$5,200,000
Operating assets	3,750,000	580,000	1,750,000
Net operating income	525,000	116,000	385,000

(a) Compute the return on investment for each division. (Round answers to three decimal places.)

Trucking ROI =	Answer
Seafood ROI =	Answer
Construction ROI =	Answer

(b) Compute the residual income for each division. Note: Use a negative sign if residual income is a loss.

Residual income	Trucking	Seafood	Construction
Net operating income	Answer	Answer	Answer
Minimum level	Answer	Answer	Answer
Residual income	Answer	Answer	Answer