Compute residual income for each division

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Reference no: EM13948347

Consider the following data for two divisions of the same company:

	North Woods	Midwest
Sales	$3,000,000	$10,000,000
Average operating assets	1,000,000	3,000,000
Operating income	140,000	330,000
Minimum required return	8%	8%

Required

1. Compute residual income for each division.

2. Compute ROI for each division.

Reference no: EM13948347

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