Really struggling on these last two probpems, please help !!!1.Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division CSales $ 15,850,000 $ 28,680,000 $ 20,680,000 Average operating assets $ 3,170,000 $ 7,170,000 $ 5,170,000 Net operating income $ 697,400 $ 487,560 $ 620,400 Minimum required rate of return 8.00 % 8.50 % 12.00 %Required:1. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover.2. Compute the residual income (loss) for each division.3. Assume that each division is presented with an investment opportunity that would yield a 9% rate of return. a. If performance is being measured by ROI, which division or divisions will probably accept or reject the opportunity?b. If performance is being measured by residual income, which division or divisions will probably accept or reject the opportunity?2. Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constriant) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's upholstered chairs appears below:Recliner Sofa Love SeatSelling price per unit $ 1,200 $ 2,010 $ 1,390 Variable cost per unit $ 750 $ 1,350 $ 1,050 Upholstery labor-hours per unit 9 hours 11 hours 4 hours Required:1. Portsmouth is considering paying its upholstery laborers additional compensation to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime premium per hour should the company be willing to pay to keep the upholstery shop open after normal working hours?2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $56 per hour. The management of Portsmouth is confident that this upholstering company’s work is high quality and their craftsmen can work as quickly as Portsmouth’s own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth earn if it provides the raw materials to the nearby company and then hires it to upholster the Love Seats?3. Should Portsmouth hire the nearby upholstering company?