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Ferris Ltd. of Australia has two divisions, one in Perth and one in Darwin. Selected data on the two divisions follow: Fen'is Ltd. of Australia

Ferris Ltd. of Australia has two divisions, one in Perth and one in Darwin. Selected data on the two divisions follow:

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Fen'is Ltd. of Australia has two divisions, one in Perth and one in Darwin. Selected date on the two divisions follow: Division Perth Darwin Sales $ 9,510,00 $ 23,4 Operating income 665309 2,16, Average operating assets 3.1T,D 11,?DD.DDD Required: 1. Compute the RBI for each division. 2. Assume that the oompanv evaluates performanoe using residual income and that the minimum required rate of return for any.r division is 15%. Compute the residual inoome for each division. Residuannmme -- 3. Is the Darwin Division's greater residual inoome en indioation that it is better managed

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