The Woods and Water Company has two operating divisions, the Service Division and the Irrigation Division. The company evaluates the performance of its divisions using the return on investment (ROI) measure. The following information pertains to the two divisions as of the end of the current year:

Service Division Irrigation Division

Total Operating Assets $400,000 $1,000,000

Cost:

Direct materials $40,000 $400,000

Direct Labor $200,000 $200,000

Overhead $25,000 $250,000

Selling & Admin costs $15,000 $150,000

Total costs $280,000 $1,000,000

During the year, the Service Division repaired 8,000 units at an average service fee of $50.00 per unit. The Irrigation Division sold 250 units at an average price of $5,000. The company requires a minimum rate of return of 12%.

Required:

Calculate the Return on Investment (ROI) measure for both divisions and the company as a whole. Based on ROI alone which division had the better performance? Round ROI measures to the nearest whole percent.