Residual Income was introduced as a performance evaluation measure that overcomes a particular weakness of ROI. Which weakness does it overcome? Managers may manipulate ROI by cutting costs that affect quality, training, advertising or repair of equipment. Managers may manipulate ROI by disposing of productive assets which will have to be replaced at a higher cost in the future. Managers may choose to ignore investments that will lower their divisione ROI but which exceed the company's owner's minimum required return. all of the above are weaknesses that are overcome by using Residual Income. None of the above are weaknesses that are overcome by using Residual Income