Ferris Ltd. of Australia has two divisions, one in Perth and one in Darwin. Selected data on the two divisions follow Division Perth Darwin Sales Operating income Average operating assets $ 9,600,000 $24,000,000 768,000 2,400,000 3,200,000 ,000,000 Required. 1. Compute the ROl 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 17%. 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 0