Automark operates a New Car division and a Used Car division, some financial data for 2020 is as follows:

New Car	Used Car
Total Assets	N$ 16 500 000	N$ 14 250 000
Current Liabilities	N$ 3 300 000	N$ 4 200 000
Operating Income	N$ 1 237 500	N$1 282 500
Required rate of return	12%	12%

REQUIRED:	MARKS
6.1	Calculate the Return on Investment (ROI) for each division using operating income as a measure of income and total assets as a measure of investment.	4
6.2	Calculate Residual Income (RI) for each division using the same definition as above for income and investment.	4
6.3	Automark would like to evaluate performance of the two divisions, one against the other which measure would be best suited for this purpose?	2
TOTAL MARKS	10