D 2: Compare ROI and Residual income (10 marks) Pride Inc., a diversified company, operates four departments. The company has collected the following departmental information for 2020: Part 1 Department Sales Cost of Goods Sold Operating Expenses Operating Income Average Operating Assets Ranking Based on ROI Ranking Based on Residus Income Residual income ROI $ 2,000,000 900,000 150,000 125,000 $1,500,000 350,000 117,300 70,000 $150,000 235,000 19,500 27,600 $350,000 $320,000 $13,200 $ 27,400 $1,750,000 2,000,000 110,000 140,000 impany requires a minimum return on the current investment of: 15% Measurement Q3 Budgeting 04 Variance Analysis 05 Critic CLICK HERE TO SAVE YOUR WORK 17 . Each department manager has been presented with a new Investment opportunity that promises a 16% return on investment (RON) el, which department(s) are likely to pursue the opportunity if their performance is measured by ROI? Which departments will reject? Why? Explain your 18 in a way that a non-accountant can understand. (2 marks) which department/s) are likely to pursue the opportunity if their performance is measured by residual income? Which departments will react? Fanswer in a way that a non-accountant can understand. (2 marks) 22 Performance Measurement Q3 Budgeting 04 Variance Analysis Q5 Critic 2 which departments are likely to pursue the opportunity of their performance is measured by residual income? Which departments will reject? Why? Ex your answer in a way that a non-accountant can understand. (2 marks) END OF QUESTION 2