Ferris Ltd. of Australia has two divisions, one in Perth and one in Darwin. Selected data on the two divisions follow: Requirements: 1. Calculate the rate of return for each division using the ROI formula stated in terms of (i) sales margin, (ii) asset turnover, and (iii) ROI. 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 16%. Calculate the residual income for each division. 3. Which division has the greatest residual income? Is the division with the greater residual income an indication that it is better managed? Explain. [Hint: In addition to answering the above, also compare the results of the ROI analysis with the results of residual income analysis.] 4. Should residual income be used to compare divisions of different sizes? Why or why not