Ferris Ltd. of Australia has two divisions, one in Perth and one in Darwin. Selected data on the two divisions follow: Sales Operating income Average operating assets Division Perth Darwin $9,360,000 22,400,000 374,400 1,120,000 3,120,000 11,200,000 Required: 1. Compute the ROI for each division Perth Darwin ROI % 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 8%. 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 O No