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Weather Accessories, Inc., has four divisions-Winter, Spring, Summer and Fall. The company is looking into the performance of each investment centers. Calculate the Return

Weather Accessories, Inc., has four divisions-Winter, Spring, Summer and Fall. The company is looking into the performance of each investment centers. Calculate the Return on investment and Residual Income for each division and explain the results. (CLEARLY SHOW AND LABEL ALL CALCULATIONS). Sales Net Income Avg Operating Assets (investment) Winter $217,900 $78,310 $793,600 a. Calculate the Return on Investment (ROI) for each division. Winter Return on Investment: Spring $249,800 $148,380 Winter $791,300 Spring b. Calculate the Residual income for each division if the cost of capital is 11% Spring Summer $271,400 $140,570 $827,300 Summer Summer Fall $289,400 $107,380 $845,400 Fall Fall e. Which division is doing the best? Explain using your data and be sure to explain the meaning of Return on Investment and Residual income.

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