Question 2 Samaiden Sdn. Bhd. is a production company focusing on property business that has been operated for five years. The organization are divided into three different divisions which are Soho Division, Condo Division and Town house Division. The company expects all divisions to generate return of 15% on its investment. Presented below is the information available from both divisions per year. Selling price per unit (RM) Variable costs per unit (RM) Unit sold Total fixed costs (RM) Investment (RM) Soho Condo Division Division 360,000 450,000 150,00 230,000 26 3,000,000 1,020,000 9,000,000 7,000,000 Town house Division 750,000 420,000 14 3,080,000 5,000,000 52 Calculate the following: (a) Evaluate the performance of the three divisions using Return on Investment (ROI) and Residual Income (RI). (15 marks) (b) Rank the divisions according to their ROI and RI calculated above and decide which division has the best performance. Explain. (4 marks) (c) Suggest THREE (3) the actions need to be taken by the management to improve ROI. (6 marks)