Jordan Technologies, Inc. has three divisions. Jordan has adesired rate of return of 12.0 percent. The operating assets andincome for each division are as follows:
| Divisions | Operating Assets | | Operating Income |
| Printer | $ | 630,000 | | | $ | 104,580 | |
| Copier | | 900,000 | | | | 99,900 | |
| Fax | | 450,000 | | | | 63,000 | |
| Total | $ | 1,980,000 | | | $ | 267,480 | |
|
Jordan headquarters has $129,000 of additional cash to invest inone of its divisions. The division managers have identifiedinvestment opportunities that are expected to yield the followingROIs:
| Expected ROIs for |
| Divisions | Additional Investments |
| Printer | 13.5 | % |
| Copier | 12.5 | % |
| Fax | 11.5 | % |
|
. Calculate the residual income:
(1) At the corporate (headquarters) level before the additionalinvestment.
(2) At the division level before the additional investment.
(3) At the investment level.
(4) At the division level after the additional investment.
