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North South West North and South North and West South and West North, South and West Presented below is selected information for three regional divisions

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North South West North and South North and West South and West North, South and West Presented below is selected information for three regional divisions of Medina Company. Divisions North West South Contribution $500,900 $300,500 $401,000 margin Controllable margin $360,800 $210,000 $141,000 Average operating $940,000 $1,640,000 $1,400,000 assets Minimum rate of 13 % 14 % 10 % return Compute the return on investment for each division. North Division West Division South Division Compute the residual income for each division. North Division 2$ West Division South Division Assume that each division has an investment opportunity that would provide a rate of return of 16%. (1) If ROI is used to measure performance, which division or divisions will probably make the additional investment? (2) If residual income is used to measure performance, hich division or divisions will probably make the additional investment

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