Zephyr Industries have two divisions; Ontario and Quebec. The results of these two...

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Accounting

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?

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