(ROI performance measures based on historical cost and current cost) Nature's Elixir Corporation operates three divisions that process and bottle natural fruit juices. The historical-cost accounting system reports the following information for 2018: Passion Fruit Division Kiwi Fruit Division Mango Fruit Division Revenues $1,000,000 $1,400,000 $2,200,000 Operating costs (excluding plant depreciation) 600,000 760,000 1,200,000 Plant depreciation 140,000 $260,000 Operating income Current assets 200,000 240,000 $440,000 $760,000 $ 500,000 $ 600,000 1,800,000 2,640,000 $2,300,000 $3,240,000 $ 400,000 280,000 $680,000 Long-term assetsplant Total assets Nature's Elixir estimates the useful life of each plant to be 12 years, with no terminal disposal value. The straight-line depreciation method is used. At the end of 2018, the Passion Fruit plant is 10 years old, the Kiwi Fruit plant is 3 years old, and the Mango Fruit plant is 1 year old. An index of construction costs over the 10-year period that Nature's Elixir has been operating (2008 year-end = 100) is: 2008 2015 2017 2018 100 136 160 170 Given the high turnover of current assets, management believes that the historical-cost and current-cost measures of current assets are approximately the same. REQUIRED 1. Compute the ROI ratio (operating income to total assets) of each division using historical-cost measures. Comment the results 2. Compute the ROI of each division, incorporating current cost estimates as of 2018 for depreciation expense and long-term assets. Comment on the results. 3. What advantages might arise from using current-cost asset measures as compared with historical cost measures for evaluating the performance of the managers of the three divisions