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Calculate the return on investment for each division

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Reference no: EM132520560

Presented below is selected information for two divisions of Juliana Company:

                                                    Eastern                             Western

Sales                                  $676,500                        $773,000

Controllable margin             58,140                            116,745

Average operating assets       114,000                         271,500

Question 1: Calculate the return on investment for each division. (Round answers to 2 decimal places, e.g. 15.25%.)

Question 2: What is the residual income for each division if the required rate of return is 13%?

Reference no: EM132520560

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