Wescott Company has three divisions: A$,$ B$,$ and C$.$ The company has a hurdle rate of $8$ percent. Selected operating data for the three divisions are as follows: Complete this question by entering your answers in the tabs below.

Req $1$

Req $5$

Req $6$

Compute the new ROI and residual income for each division if the project was implemented within that division.

Note: Loss amounts should be entered with a minus sign. Enter your ROI percentage answers to $2$ decimal places, $($i$.$e$.,$

$0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%.).$ Enter your answers in whole dollars not in millions. Complete this question by entering your answers in the tabs below.

Req $1$

Req $5$

Req $6$

Compute the residual income for each division.

Note: Loss amounts should be indicated by a minus sign. Enter your answers in whole dollars not in millions. Complete this question by entering your answers in the tabs below.

Compute the ROI for each division.

Note: Enter your answers as a percentage rounded to two decimal places, $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34\%.)$

Division A Division B Division C

Sales revenue $ $1,210,000$ $ $1,281,000$ $ $1,316,000$

Cost of goods sold $748,000941,000956,000$

Miscellaneous operating expenses $83,00071,00072,000$

Interest and taxes $67,00060,00060,000$

Average invested assets $11,587,0002,823,0004,640,000$

Wescott is considering an expansion project in the upcoming year that will cost $$7\mathrm{.}2$ million and return $$653,000$ per year. The project would be implemented by only one of the three divisions.Wescott Company has three divisions: A$,$ B$,$ and C$.$ The company has a hurdle rate of $8$ percent. Selected operating data for the three

divisions are as follows:

Wescott is considering an expansion project in the upcoming year that will cost $$7\mathrm{.}2$ million and return $$653,000$ per year. The project

would be implemented by only one of the three divisions.