Mining Company has two divisions. The following information is available:

North Division South Division

North Division South Division

Revenue for year	$300,000	$500,000
Operating income before taxes for year	$100,000	$90,000
Average invested capital for year	$100,000	$200,000
Invested capital at end of year	$200,000	$300,000
Tax rate	30%	30%
After-tax cost of capital for year	20%	15%

1. Using operating income after taxes division: as the income measure, compute the following for each

A. Return on Investment (ROI).

B. Return on Sales (ROS)

C. Capital Turnover (CT)

D. Residual Income (RI)

In addition, briefly explain in words how you went about finding the values of ROI, ROS, CT & RI.

2. Which division is more successful? Why?

3. What did you use to calculate CT, average invested capital for year or invested capital at the end of the year and why?