Top management is trying to determine a consistent but fair valuation system to use to evaluate each of its four divisions. This year€™s performance data are summarized as follows:

Required
A. Which division would earn a bonus if top management used ROI based on operating assets?
B. Which division would earn a bonus if top management used ROI based on operating assets minus current liabilities?
C. Which division would earn a bonus if top management calculated residual income based on operating assets with a minimum return of 12 percent?
D. Which division would earn a bonus if top management calculated residual income based on operating assets minus current liabilities with a minimum return of 12percent?

Division 3 4 Operating income $1,000 $1,200 1,600 $1,600 Operating assets Current liabilities 4,000 6,000 15,000 8,000 400 2,000 2,400 200