(Solved): Fanning Home Maintenance Company earned operating income of \( \$ 6,208,800 \) on operating assets ...

Fanning Home Maintenance Company earned operating income of \( \$ 6,208,800 \) on operating assets of \( \$ 59,700,000 \) during Year 2 The Tree Cutting Division eamed \( \$ 1,100,800 \) on operating assets of \( \$ 6,880,000 \). Fanning has offered the Tree Cutting Division \( \$ 2,230.000 \) of additional operating assets. The manager of the Tree Cutting Division believes he could use the additional assets to generate operating income amounting to \( \$ 461,610 \). Fanning has a desired return on investment (ROl) of 840 percent. Required o. Calculate the return on investment for Fanning, the Tree Cutting Division, and the additional investment opportunity b. Calculate the residual income for Fanning, the Tree Cutting Division, and the additional investment opportunity. Complete this question by entering your answers in the tabs below. Calculate the return on investment for Fanning, the Tree Cutting Division, and the additional investment opportunity. Note: Round your answers to 2 decimal places, (i.e., \( 0.2345 \) should be entered as 23.45). Fanning Home Maintenance Company earned operating income of \( \$ 6,208,800 \) on operating assets of \( \$ 59.700,000 \) during Year 2 The Tree Cutting Division eamed \( \$ 1,100,800 \) on operating assets of \( \$ 6,880,000 \). Fanning has offered the Tree Cutting Division \( \$ 2,230,000 \) of additional operating assets. The manager of the Tree Cutting Division believes he could use the additional assets to generate operating income amounting to \( \$ 461,610 \) Fanning has a desired returnton investment (ROI) of \( 8.40 \) percent Required o. Calculate the return on investment for Fanning, the Tree Cutting Division, and the additional imvestment opportunity. b. Calculate the residual income for Fanning, the Tree Cutting Division, and the additional investment opportunity. Complete this question by entering your answers in the tabs below. Calculate the residual income for Fanning, the Tree Cutting Division, and the additional investment opportunity.