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 $ 9,030,000 $20,200,000 722,400 2,020,000 Operating income 3,010,000 10,100,000 Average operating assets 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 15%. 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 No