Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has profit centers in the following locations with the following net incomes and total assets:

		Net Income	Assets
Las Vegas		$710,000	$4,000,000
Dallas		950,000	8,000,000
Tampa		1,790,000	12,000,000

a. Calculate ROI for each profit center and rank them from highest to lowest based on ROI.

Round ROI to the nearest whole percentage.

	ROI	Rank
Las Vegas	Answer	Answer 1, 2 or 3
Dallas	Answer	Answer 1, 2 or 3
Tampa	Answer	Answer 1, 2 or 3

b. Calculate residual income for each profit center based on a desired ROI of 5% and rank them from highest to lowest based on residual income.

	ROI	Rank
Las Vegas	Answer	Answer 1, 2 or 3
Dallas	Answer	Answer 1, 2 or 3
Tampa	Answer	Answer 1, 2 or 3