Solution-Calculate the missing amounts for each division

Calculate the missing amounts for each division

Reference no: EM13515599

Investment center analysis; ROI and residual income Milano Corporation has three operating divisions and requires a 12% return on all investments. Selected information is presented here:

	Division A	Division B	Division C
Revenues	$500,000	?	?
Operating income	$60,000	?	$80,000
Operating assets	$250,000	$600,000	?
Margin	?	12%	?
Turnover	?	1 turn	2 turns
ROI	?	?	?
Residual income	?	?	$20,000

Required:

a. Calculate the missing amounts for each division.

b. Comment on the relative performance of each division.

c. Provide an example to show how residual income improves decision making at the divisional level.

Reference no: EM13515599

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Calculate the missing amounts for each division

Reference no: EM13515599

Reference no: EM13515599

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