a. Calculate the ROI for each division.

b. Calculate the Residual Income (RI) for each division. c. Calculate the Return on Sales (ROS) for each division.

d. Both division managers have bonuses tied to short-term Operating Income measures. If both managers are presented with an opportunity to invest in a project that is estimated to achieve an ROI of 15%, what is each manager likely to decide regarding the proposed project? UT manager will ______________________________________________________________ AZ manager will _______________________________________________________________

*Please help with this problem. Can you please show your work so I can understand the answer. Thank you!!**

4. (10 points) Consider the following data for the UT & AZ divisions of Southwest Co.: Sales Cost of Goods Sold Operating Income Investment in assets UT $ 4,000,000 1,500,000 750,000 6,250,000 AZ $ 2,000,000 400,000 450,000 2,500,000 The Southwest's required rate of return is 10%. Show your work to support the following calculations