Compute the return on investment for each division

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Reference no: EM133185322

Question - Presented below is selected information for three regional divisions of Swifty Company.

 

Divisions

 

North

West

South

Contribution margin

$299,800

$499,100

$400,100

Controllable margin

$139,500

$360,000

$210,000

Average operating assets

$930,000

$1,440,000

$1,400,000

Minimum rate of return

11%

14%

10%

Required -

1. Compute the return on investment for each division.

2. Compute the residual income for each division.

Reference no: EM133185322

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