Compare Return on Investment (ROI) and Residual Income Kiri King Corp. of Indonesia has two regional divisions with headquarters in Kuala Lumpur and Ipoh. Selected data on the two divisions follow: . Division Kuala Lumpur Ipoh Sales $ 1,000,000 $4,500,000 Net operating income : $80,000 $135,000 Average operating assets $ 800,000 $2,250,000 Required: 1. Compute the return on investment (ROI) for Ipoh. 2. Compute the mergin for Ipoh. 3. Compute the turnover for Ipoh. 4. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 3%. Compute the residual income for Ipoh 5. Is Ipoh's greater amount of residual income an indication that it is better managed? HINT: ROJ = Net operating income Sales Sales Average operating assets =