Tan Corporation of Japan has two regional divisions with headquarters in Osaka and Yokohama. Selected data on the two divisions follow:

Division

Osaka Yokohama

Sales $ $3,000,000$ $ $9,000,000$

Net operating income $ $210,000$ $ $720,000$

Average operating assets $ $1,000,000$ $ $4,000,000$

Required:

For each division, compute the return on investment $($ROI$).$

Compute the residual income for each division assuming the company$$s minimum required rate of return is $15\%.$