es E10-8 (Algo) Evaluating Managerial Performance Using Return on Investment, Residual Income [LO 10-4, 10-5] Orange Corporation has two divisions: Fruit and Flower. The following information for the past year is available for each division: Fruit Division Flower Division $ 1,740,000 $ 2,610,000 1,392,000 1,957,500 $ 348,000 $ 652,500 $ 3,480,000 $ 2,718,750 Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Orange has established a hurdle rate of 6 percent. 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 $131,000. The total investment required is $2,200,000, 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. Prev Check my work 5 of 6 www Next > 3

E10-8 (Algo) Evaluating Managerial Performance Using Return on Investment, Residual Income [LO 10-4, 105] Orange Corporation has two divisions: Frult and Flowet. The following information for the past year is avallable for each division Orange has established a hurdle rate of 6 percent Required: 1.a. Compure each division's return on investment (RO) 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 $131,000. The total investment required is $2,200,000, which will be split evenly between the two divisions. Calculate the ROl and residual income for each division after the investment is made. 3. Determine whether both managers will support the investment. each diviston 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. Compute each division's return on investment (ROI) and residual income for last year. Note: Enter your ROI answers as a percentage rounded to two decimal places, ( {,e, 0.1234 should be entered as 12.34%6. 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. Determine which manager seems to be performing better. Suppose Orange is investing in new technology that will increase each division's operating income by $131,000. The total investment required is $2,200,000, which will be split evenly between the two divisions. Calculate the ROl and residual income for each division after the investment is made. Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.) investment required is $2,200,000, which will be split evenly between the two divisions. Calculate the ROl and residual 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. Determine whether both managers will support the investment