The Following Information Is Available About the Charger Division of Weston

Essay

The following information is available about the Charger Division of Weston Company. Weston requires a return of 8% from all divisions.
$\begin{array}{lrr}\text { Charger Division Earnings from Operations } & \$ & 12,854,000 \\\text { Charger Division Sales } & \$ & 92,500,000 \\\text { Charger Division Identifiable Assets } & \$ & 156,000,000\end{array}$

Required:
a. Compute the ROI for the Charger Division.
b. Compute the residual income for the Charger Division.