Posted: May 3rd, 2016

Under which of these methods would they accept an opportunity with a 15 percent return?

Selected sales and operating data for three division of three different companies are given below:

a. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. Show computations.
b. Computer the residual income for each division. Show computations.
c. Under which of these methods would they accept an opportunity with a 15 percent return. Show computations and details.

Selected sales and operating data for three division of three different companies are given below:

(Please see the attached file.)

a. Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. Show computations.
b. Computer the residual income for each division. Show computations.
c. Under which of these methods would they accept an opportunity with a 15 percent return. Show computations and details.