Ferris Ltd. of Australia has two divisions, one in Perth and one in Darwin. Selected data on the two divisions follow: Sales Operating income Average operating assets Division Perth Darwin $9,000,000 $20,000,000 630.000 1,800,000 3,000,000 10,000,000 Required: 1. Compute the ROI for each division. Perth Darwin % ROI % 2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 16%. Compute the residual income for each division. Perth Darwin Residual income 3. Is the Darwin Division's greater residual income an indication that it is better managed? O Yes O NO