Compute the ROI for the Manufacturing Division

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Question - The following information is available about the status and operations of the Manufacturing Division of Oakland Company, which has a hurdle rate (minimum required rate of return) of 6%.

Divisional identifiable average assets $415,096

Divisional income from operations $20,696

Divisional sales revenue $370,808

Required -

a. Compute the ROI for the Manufacturing Division.

b. Break the Manufacturing Division ROI down using the DuPont formula.

c. Compute the residual income for the Manufacturing Division.

Reference no: EM132613261

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