Food for Healthy Eating Ltd has three divisions, Cereal, Dried Fruit, and Health Snacks. The current level of investments and operating profits by each division are as follows:

	Cereal Division	Dried Fruit Division	Healthy Snacks Division
Operating assets	$4,500,000	$ 3,400,000	$ 4,000,000
Operating profit	$ 445,000	$250,000	$ 380,000

Required:

1. Compute the Return on Investment (ROI) for each division.
2. Compute the Residual Income (RI) for each division. Food for Health Eating Ltd requires a minimum rate of return of 8%
3. Under what type of situation would return on investment (ROI) be a better performance measure than residual income and vice versa?