Assume that the company evaluates performance

Reference no: EM131024980

Rains Nickless Ltd. of Australia has two divisions that operate in Perth and Darwin. Selected data on the two divisions follow:

	Division
	Perth		Darwin
Sales	$	7,560,000	$	26,750,000
Net operating income	$	498,960	$	1,952,750
Average operating assets	$	2,700,000	$	10,700,000

Required:

1. Compute the return on investment (ROI) for each division. (Do not round intermediate calculations. Round your final answers to 2 decimal places.)

Perth	Darwin
ROI	%	%

2. Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 16%. Compute the residual income for each division.

Perth	Darwin
Residual income	$	$

3. Is the Darwin Division’s greater residual income an indication that it is better managed?

Yes/No

Reference no: EM131024980

Questions Cloud

Calculate the pressures in torr of all reactants : Methane, CH4, reacts with I2 according to the reaction CH4(g) + l2(g) ? CH3l(g) + HI(g). At 630 K, Kp for this reaction is 2.26 X 10-4. A reaction was set up at 630 K with initial partial pressures of methane of 105.1 torr and of 7.96 torr for I2...

What is the velocity of money in tropicia : What is the velocity of money in Tropicia? In 2006 suppose the money supply increases by 50% and real GDP has increased by $400. Given that the velocity of money is the same as in 2005, what is the new aggregate price level in Tropicia in 2006? Wha..

What types of risks or vulnerabilities could be transferred : What types of risks or vulnerabilities could be transferred from a supplier and/or imposed upon a purchaser of cyber security related products and/or services?

How do solving linear inequalities differ : What is the necessary condition for the following fraction to be valid? What value(s) of "x" that cannot be used in this fraction?

Assume that the company evaluates performance : Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 16%. Compute the residual income for each division.

Implement the affine cipher in c programing language : Implement the Affine Cipher in C programing language with comments - Implement DES in C programming language with comments.

Which graphs correctly describes the system and its solution : Janet invested $27,000, part at 15% and part at 9%. If the total interest at the end of the year is $3,390, how much did she invest at 15%?

Calculate kp for this reaction : The equilibrium 2 NO(g) + Cl2(g) ? 2 NOCl(g) is established at 500 K. An equilibrium mixture of the three gases has partial pressures of 0.095 atm, 0.171 atm, and 0.28 atm for NO, Cl2, and NOCl, respectively. Calculate Kp for this reaction at 500...

Research and report upon the problem of supply chain risk : For this paper, you will research and report upon the problem of Supply Chain Risk as it pertains to the cybersecurity industry.

User Account

All Pages