Ferris Ltd. of Australia has two divisions, one in Perth and one in Darwin. Selected data on the two divisions follow: Sales Division Perth Darwin $9,330,000 $22,200,000 466,500 1,554,000 3,110,000 11,100,000 Operating income Average operating assets Required: 1. Compute the ROI for each division. Darwin Perth % ROI % 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 12%. Compute the residual income for each division. Perth Darwin Residual income 3. Is the Darwin Division's greater residual income an indication that it is better managed? Yes