Zephyr Industries have two divisions; Ontario and Quebec.

The results of these two divisions for $2022$ were:

Quebec Ontario

Sales $8,500,0004,000,000$

Operating expenses $6,700,0002,850,000$

Operating assets, $01/01/20229,800,0006,000,000$

Operating assets, $12/31/202210,200,0006,500,000$

You are looking at filling a new senior management position and are

basing your decision on how well these two divisional managers performed.

Required: Assume a target rate of $11\%.$

$1.$ If the evaluation was based on ROI, which manager would you promote?

$2.$ Would your answer change if the evaluation was based on Residual Income?