Rains Nickless Ltd. of Australia has two divisions that operate in Perth and Darwin. Selected data on the two divisions follow:

	Division
	Perth		Darwin
Sales	$	7,170,000	$	20,600,000
Net operating income	$	530,580	$	1,297,800
Average operating assets	$	2,390,000	$	10,300,000

Required:
1.	Compute the return on investment (ROI) for each division. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "%" sign in your response.)

	Perth	Darwin
ROI	%	%

2.	Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 9%. Compute the residual income for each division. (Omit the "$" sign in your response.)

	Perth	Darwin
Residual income	$	$

3.

Is the Darwin Divisions greater residual income an indication that it is better managed?

	Yes
	No