If roi is used to measure performance which division or

Reference no: EM13605061

Presented below is selected information for three regional divisions of Glendo Company.

Divisions
North West South
Contribution margin $300,500 $499,100 $399,000
Controllable margin $150,900 $399,800 $225,500
Average operating assets $1,006,000 $1,738,261 $1,503,333
Minimum rate of return 12% 16% 8%

(a)Compute the return on investment for each division
(b)Compute the residual income for each division.
(c)Assume that each division has an investment opportunity that would provide a rate of return of 19%.

If ROI is used to measure performance, which division or divisions will probably make the additional investment? (North, South, West, North South and West, North and South, North and West, or South and West)

If residual income is used to measure performance, which division or divisions will probably make the additional investment? (North, South, West, North South and West, North and South, North and West, or South and West)

Reference no: EM13605061

Questions Cloud

On october 12013 holt company places a new asset into : on october 12013 holt company places a new asset into service. the cost of the asset is 80000 with an estimated 5 year

Determine the cycle thermal efficiency for the internally : an air standard brayton closed cycle receives air at 1 atm and 298 k. the upper temperature and pressure limits are 5

A plant asset cost 192000 and is estimated to have a 24000 : a plant asset cost 192000 and is estimated to have a 24000 salvage value at the end of its 8 year useful life. the

A -25 10-6 c charge is spread uniformly over the inner : two spherical shells have a common center. a -2.5 10-6 c charge is spread uniformly over the inner shell which has a

If roi is used to measure performance which division or : presented below is selected information for three regional divisions of glendo company.divisionsnorth west

A company purchased office equipment for 350000 it is : a company purchased office equipment for 350000. it is estimated that the equipment will have a 35000 salvage value at

A manufacturing has prepared the following income : a manufacturing has prepared the following income statementsales 450000cogs 200000gross margin 250000operating expenses

An 84 kg fullback moving east with a speed of 58 ms is : an 84 kg fullback moving east with a speed of 5.8 ms is tackled by a 97 kg opponent running west at 3.6 ms and the

For the same electrical output what is the percent : a fossil-fuel steam power plant operates at about 50 of carnot thermal efficiency. it has been suggested that the air

User Account

All Pages