Exercise 10-20 Presented below is selected information for three regional divisions of Medina Company. Divisions North West South Contribution margin Controllable margin Average operating assets $299,600 $141,000 $500,400 $360,000 $399,300 $208,500 $940,000 $2,000,000 $1,390,000 Minimum rate of return 11 % 14 % 9 % * Your answer is incorrect. Try again. Compute the residual income for each division. North Division West Division III South Division x Your answer is incorrect. Try again. 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, which division or divisions will probably make the additional investment? North Shd South this question: Open Show Work West North and South North and West South and West North, South and West Question Attempts: 1 of 3 used