The Following Information Is Available About the Appliance Division of Rainier

Essay

The following information is available about the Appliance Division of Rainier Company.
Rainier requires a return of 9% from all divisions.
$$\begin{array} { l c } \text { Appliance Division Earnings from Operations } & \$ 18,462,000 \\\text { Appliance Division Sales } & \$ 112,600,000 \\\text { Appliance Division Identifiable Assets } & \$ 173,700,000\end{array}$$
Required:
a. Compute the ROI for the Appliance Division.
b. Compute the residual income for the Appliance Division.