AB company LTD has two investment centres: Clothing and Jewellery. Selected information for each segment is as follows:

Clothing Jewellery

GHS GHS

Sales 480,000 850,000

Operating Income 86,400 178,500

Operating Assets @ Jan 1, 2019 180,000 435,000

Operating Assets @ Dec 31, 2019 220,000 509,444

The company's minimum desired rate of return for investment centre evaluation is 20%.

Required:

A. Calculate the following for each segment

1. Operating Margin percentage

2. Return on investment

3. Residual income

4. Which segments is performing better. Give reasons for your answer.