Please answer the last question only

Padu Machinery Berhad is divided into two segments the West Division and the East Division. The divisions are considered as investment centres and will compile an operational statement for submission to Padu Machinery Berhad at the end of the financial year. The following are the operating statements for these two divisions East Division (RM) 600,000 Sales revenue Variable costs Fixed cost West Division (RM) 1,500,000 30% of sales revenue 100,000 330,000 7,500,000 40% of sales revenue Central cost Total divisional net assets 30,000 150,000 1,200,000 Padu Machinery currently has a target return on capital of 12% per year. However, the of capital is likely to rise and is considering increasing the target return on capital believes its cost Required: (Show all calculations) (a) Compute the return on investment (ROI) in percentage for each division and discuss the relative performance of the two divisions. (7 marks) (b) Compute the residual income (RI) for each division and explain the implications of this information for the evaluation of the division's performance. (7 marks) (a) Explain two further methods of assessment of divisional performance that could be used by Padu Machinery in addition to ROI and RL (6 marks)