Calculation of residual income and return on investments

Reference no: EM1319552

Information for two divisions of Charming Confections Company is given below:

	Peanut	Plain
Net income	$60,000	$100,000
Capital investment	$400,000	$500,000

a. If Charming Confections Company charges each division 12% for capital employed, compute residual income for the Peanut and Plain divisions.

b. Compute the ROI for each division.

Reference no: EM1319552

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