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________%