The investment center return on assets

Question

Alex and john are managers of two product lines for company. One of them is a candidate for promotion based on performance. Using the following data"

1. Calculate the residual income (assume a target income of 10% return on assets) and the investment center return on assets.
2. Indicate which manager should be recommended for promotion and why.

Alex                       john     

Revenue                $205       $270

Costs                     189         232

Average assets      300         290