QUESTION 3 The Southern Division is one of the divisions in Mega Berhad. Without making any new investment, the Southern Division is expected to earn operating income of RM310,000 with a sales base of RM3.45 million and net operating assets of RM3 million for the next accounting period. The Southern Division is currently considering an investment that requires an additional investment of RM700,000 and an increase in operating income of RM57,500 (sales increased by RM575,000). If implemented, this new investment will increase initial operating assets by RM700,000 and final 2 operating assets by RM500,000. Assume that the minimum rate of return required by Mega Berhad is 7 percent. Be required: a) Calculate the return on investment (ROI) of the Southern Division under the following situations: i) without new investment. ii) with new investments. If the division managers at Mega Berhad are evaluated and given bonuses based on ROI performance, will the Southern Division Managers receive the new investment? Explain. b) Calculate the surplus income (RI) of the Southern Division under the following situations: i) without new investment. ii) with new investments. If the division managers at Mega Berhad are evaluated and given bonuses based on RI's performance, will the Southern Division Managers receive the new investment? Explain.