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:

	Division A		Division B		Division C
Sales revenue	$	1,295,000	$	1,072,000	$	1,074,000
Cost of goods sold		800,000		787,000		780,000
Miscellaneous operating expenses		72,000		60,000		61,000
Interest and taxes		56,000		49,000		49,000
Average invested assets		9,684,000		2,306,000		3,793,000

Wescott is considering an expansion project in the upcoming year that will cost $5.8 million and return $532,000 per year. The project would be implemented by only one of the three divisions.

Required:

1.

Compute the ROI for each division. (Do not round your intermediate calculations. Round your percentages to 2 decimal places.)

Division A _______%

Divsion B ________%

Division C________%

2.

Compute the residual income for each division. (Loss amounts should be indicated by a minus sign.)

Division A ______

Divsion B ________

Division C________

4-a.	Compute the return on the proposed expansion project. (Round your percentages to 2 decimal places.)
	Return on proposed expansion plan project_______%

6.

Compute the new ROI and residual income for each division if the project was implemented within that division. (Loss amounts should be indicated by a minus sign. Do not round your intermediate calculations. Round your percentages to 2 decimal places.) Residual income Division A ______ Divsion B ________ Division C________ ROI Division A _______% Divsion B ________% Division C________%