Dragon Empire Corporation has two divisions operating in similar markets: A and B. Selected data on the two divisions follows: Sales Net Operating income Average operating assets Minimum required rate of return Division A Division B P 9,000,000 P 20,000,000 630,000 1,800,000 3,000,000 10,00,000 16% 16% Required: (Show your computations to support your answers.) 1. Compute the following for each division: a. Return on investment b. Residual income C. Economic value-added d. Return on Sales 2. Is Division B's greater residual income an indication that it is better managed? Explain. 3. Based on your computations, which division performs better?