14 2.5 points E10-8 (Algo) Evaluating Managerial Performance Using Return on Investment, Residual Income [LO 10-4, 10-5] Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division: Fruit Division Book Sales revenue 960,000 Cost of goods sold and operating expenses 720,000 Flower Division $ 1,440,000 1,080,000 Net operating income) $ 240,000 S 360,000 Average invested assets $ 2,000,000 $2,000,000 Hint Ask Orange has established a hurdle rate of 7 percent. References Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. 1-b. Determine which manager seems to be performing better. 2. Suppose Orange is investing in new technology that will increase each division's operating income by $130,000. The total investment required is $2,000,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for each division after the investment is made. 3. Determine whether both managers will support the investment. Complete this question by entering your answers in the tabs below. Req 1A Req 18 Req 2 Req 3 Compute each division's return on investment (ROI) and residual income for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (.e., 0.1234 should be entered as 12.34%.) ) Check my