E10-9 (Algo) 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 5.51 percent. Selected operating data for the three divisions follow: Peak View Grand Sales revenue Cost of goods sold Miscellaneous operating expenses Average invested assets 326,000 $ 213,000 37,000 1,380,000 221,000 108,000 34,000 940,000 299,000 184,000 32,000 1,085,000 Required: 1. Compute the return on investment for each division. 2. Compute the residual income for each division. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Compute the return on investment for each division. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) Peak View Grand Return on Investment Required 1 Required 2

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