Compute the residual income for the food service division

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Reference no: EM13579499

Food Service Division of Manitowish Company, which has a hurdle rate of 6%.


Divisional identifiable average assets	$	412,548
Divisional income from operations	$	19,772
Divisional sales revenue	$	366,452

a.	Compute the ROI for the Food Service Division. (Round your answer to 1 decimal place. Omit the "%" sign in your response.)

Return on investment

b.	Break the Food Service Division ROI down using the DuPont formula.(Round your answers to 2 decimal places. Omit the "%" sign in your response.)

Food Service Division ROI
Profit margin	%
Investment turnover

c.	Compute the residual income for the Food Service Division. (Round your answer to the nearest dollar amount. Negative amount should be indicated by a minus sign. Omit the "$" sign in your response.)

Residual income

Reference no: EM13579499

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