1. Tesla evaluates divisional performance: Division A (Operating income $2,000,000, Assets $10,000,000), Division B (Operating income $1,500,000, Assets $8,000,000).
   • Requirements:
     • Calculate the return on investment (ROI) for each division.
     • Calculate the residual income for each division.
     • Rank divisions based on ROI and residual income.
     • Discuss the strengths and limitations of ROI and residual income as performance metrics.