i dont know how to do this

Question 4a Performance Measurement

Brooks Ltd specialises in tennis equipment and has two divisions (1) the Tennis Racquet Division and (2) the Tennis Ball Division

The following information relates to the two divisions:

	Racquet Division	Ball Division
Sales	$5,000,000	$3,000,000
Variable Costs	$2,500,000	$1,200,000
Fixed Costs	$1,500,000	$700,000
Investment	$6,000,000	$8,000,000

Brooks Ltd has a required rate of return of 15%.

Required:

4a) Calculate the return on investment (ROI) for each division.

4b) Using the information provided in Question 4a, calculate the residual income (RI) for each division.

Brooks Ltd is considering investing in a new opportunity for each of the divisions. The investment costs $2,000,000 and will increase each divisions profit by $280,000.

4c) Based on your calculations in 4a, if divisional performance is assessed based on ROI, which division(s) would go ahead with the new investment?

Question 4d Performance Measurement

4d) Based on your calculations in 4b), if divisional performance is assessed based on RI, which division(s) would go ahead with the new investment?

Question 4e - Performance Measurement

Brooks Ltd has approached you to develop a balance scorecard for their company.

4e) Recommend key non-financial measures Brooks Ltd could implement in their performance measurement system.