please answer following question! $1$a and $1$b

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Wyalusing Industries has manufactured prefabricated houses for over $20$ years. The houses are constructed in sections to

be assembled on customers' lots. Wyalusing expanded into the precut housing market when it acquired Fairmont

Company, one of its suppliers. In this market, various types of lumber are precut into the appropriate lengths, banded into

packages, and shipped to customers' lots for assembly. Wyalusing designated the Fairmont Division as an investment

center. Wyalusing uses return on investment $($ROI$)$ as a performance measure, with investment defined as average

productive assets. Management bonuses are based in part on ROI. All investments are expected to earn a minimum return

of $14$ percent before income taxes. Fairmont's ROI has ranged from $29\mathrm{.}2$ to $32\mathrm{.}4$ percent since it was acquired. Fairmont

had an investment opportunity in $201$ that had an estimated ROI of $28$ percent. Fairmont's management decided against

the investment because it believed the investment would decrease the division's overall ROI. The $201$ income statement

for Fairmont Division follows. The division's productive assets were $$18,900,000$ at the end of $201,$ a $5$ percent increase

over the balance at the beginning of the year.

FAIRMONT DIVISION

Income Statement

For the Year Ended December $31,20x1$

$($in thousands$)$

Sales revenue

Cost of goods sold

Gross margin

Operating expenses:

Administrative

Selling

Income from operations before income taxes

$$68,070$

$41,600$

$$26,470$

Required:

$1-$a$.$ Calculate the return on investment $($ROI$)$ for $201$ for the Fairmont Division.

$1-$b$.$ Calculate residual income for $201$ for the Fairmont Division.

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Calculate the return on investment $($ROI$)$ for $201$ for the Fairmont Division.