Jordan Company has two divisions, which reported the following results for the most recent year.

	Division I	Division II
Income	2,700,000	600,000
Average invested capital	18,000,000	3,000,000
ROI	15%	20%

Imputed interest rate = 10%

1. Under residual income, which division is considered to have a better performance?

Group of answer choices

Division II

Division I

Neither Division I nor II

Cannot be determined

2. What is the residual income of Division II?

Group of answer choices

294,000

300,000

900,000

0