You are a consultant for the Gybson Guitar Company. The Company currently has a target rate of return of 10%. The company awards bonuses are based upon ROl increases. If ROI decreases, no bonus is earned. Bonuses are a key part of executive compensation. The Company has four Divisions: The Oldies, Rock, Jazz and Classic. Current results for each division of Gybson Company are as follows Total Assets Oldies $1,000,000 $1,500,000 $1,300,000 Classic$1,200,000 Income $160,000 $190,000 $190,000 $210,000 Rock Jazz Respond to the following in a Microsoft Word document and submit. Give complete and clear answers . Compute the ROI & Residual Income for each division and for Gybson as a whole (round to 6 points after the decimal) An opportunity comes along for the Classic Division to purchase a small guitar company. The purchase will require an investment of $250,000 and will increase income by $27,000 o What is new ROI for the Classic department if they make the investment? Round to 6 points after the decimal o What is new ROl for the Gybson if the Classic department makes the investment? o Will the head of the Classic Division make the investment if bonuses are only based upon increasing ROI? Explain o Does the president of Gybson want the head of Classic Division to make the investment? Explain. o What happens to the Residual income of Classic if they make the investment? Would the head of Classic Division make the investment if bonuses were based upon increasing Residual Income