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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

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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 ADivision B Division C $ 1,240,000 S 1,167,000 1,184,000 860,000 Sales revenue Cost of goods sold Miscellaneous operating expenses Interest and taxes Average invested assets 766,000 77,000 61,000 857,000 65,000 54,000 54,000 10,549,000 2,54000 4,178,000 an re n S587000 pe r ear he projectvo n inplemented oni ne t he h iv sons. Wescott is considering an expansion project in the upcoming year hat wil cos se 8 mili S%) Required 1. Compute the ROI for each division. hould bu entered s (Do not round your intermediate calculations. Round your percentage answer to 2 decimal places, (i.e. 0.1234 s ROI Division A Division B Division C 2. Compute the residual income for each division. (Loss amounts should be indicated by a minus sign.) Residual income Division A Division EB Division C

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