Problem $4$: Performance Measurement $($New Problem information!!$)$

Weather Accessories, Inc., has four divisions$-$Winter, Spring. Summer and Fall. The company is looking into the performance of each investment centers. Calculate the Return on Investment and Residual Income for each division and explain the results. $($CLEARLY SHOY AND LABEL ALL CALCULATIONS$).$

$\backslash$table$[[,$Winter,Spring,Summer,Fall$],[$Sales$,$$$243,000,$$$249,000,$$$269,100,$$$285,200],[$Net Income,$$82,410,$$$114,900,$$$100,370,$$$107,730],[,,,,],[$Avg Operating Assets $($investment$),$$$814,600,$$$798,900,$$$826,400,$$$820,100]]$

a$.$ Calculate the Return on Investment $($ROI$)$ for each division.

$\backslash$table$[[,$Winter,Spring,Summer,Fall,CHP $9,],[$Return on lnvestment:$,,,,,,],[,,,,,,],[,,,,,,],[,,,,,,],[,,,,,,],[,,,,,,]]$

b$.$ Calculate the Residual Income for each division if the cost of capital is $11\%$

Winter

Spring

Summer

Fall

c$.$ Which division is doing the best? Explain using your data and be sure to explain the meaning of Return on Investment and Residual Income.