Page 471 E10-9 Evaluating Managerial Performance Using Return on Investment, Residual Income LO 10-4, 10-5 Luke Company has three divisions: Peak, View, and Grand. The company has a hurdle rate of 6 percent. Selected operating data for the three divisions follow. Peak View Grand Sales revenue $ 325,000 $220,000 $ 298.00 Cost of goods sold 216,000 123,000 202,000 Miscellaneous operating expenses 45,000 36,0XX) 39,000 Average invested assets 1.100,000 990,0%) 1.000.000 Required: 1. Compute the return on investment for each division 2. Compute the residual income for each division