Ferris Ltd. of Australia has two divisions, one in Perth and one in Darwin. Selected data on the two divisions follow 19 Division Perth Darwin s 9120,000 s20,800,000 Sales Operating income Average operating assets 729,600 2,080,000 Skipped 3,040,000 10,400,000 Required 1. Compute the ROI for each division. 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. Residual incorme 3. Is the Darwin Division's greater residual income an indication that it is better managed? O Yes O No