The following excerpt is from Rooney Companys 2014 annual report filed with the SEC: Management evaluates the performance of our operating segments separately to individually monitor the different factors affecting financial performance. Our Company manages income taxes and certain treasury-related items, such as interest income and expense, on a global basis within the Corporate operating segment. We evaluate segment performance based on income or loss before income taxes. Below are selected segment data for Rooney Company for the 2014 and 2013 fiscal years. Dollar amounts are in millions.

Required

a. Compute the ROI for each of Rooneys geographical segments for each fiscal year. Which segment appears to have the best performance during 2014 based their ROIs?

b. Assuming Rooneys management expects a minimum return of 30 percent, calculate the residual income for each segment for each fiscal year. Which segment appears to have the best performance based on residual income from 2013 to 2014? (Enter your answers in millions. Negative amounts should be indicated by minus sign. Round your percentage answers to 1 decimal place and other answers to nearest dollar amount.)

Eurasia & Africa Latin America North America Europe Pacific 2014 Fiscal Year Net operating revenues Income before taxes $2,705 1,075 1,287 $5,503 3,346 3,941 $5,465 2,717 2,845 $25,188 2,867 38,743 $6,739 2,868 2,102 Identifiable operating assets 2013 Fiscal Year Net operating revenues Income before taxes 2,798 1,088 1,275 6,260 3,356 4,358 5,795 3,412 3,422 25,296 2,852 39,827 6,881 2,905 2,253 Identifiable operating assets