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 $ $9,500,000$ $ $25,000,000$

Net operating income $ $855,000$ $ $2,750,000$

Average operating assets $ $2,375,000$ $ $12,500,000$

Required:

$1.$ For each division, compute the return on investment $($ROI$).$

$2.$ Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is $18\%.$ Compute the residual income for each division.