Reference no: EM132794395

ABC Company had the following results as of 12/31/2020:

ABC's hurdle rate is 10%

CONTROLLABLE REVENUE $10,000,000

CONTROLLABLE COST 8,000,000

CONTROLLABLE ASSETS 40,000,000

CONTROLLABLE INCOME ?

Problem 1: What is the division's Return on Investment (ROI)?

A. 5%

B. 10%

C. 20%

D. 25%

Problem 2: What is the division's margin?

A. 5%

B. 10%

C. 20%

D. 25%

Problem 3: What is the division's turnover?

A. 5%

B. 10%

C. 20%

D. 25%

Problem 4: What is the division's Residual Income (RI)?

A. $0

B. $(2,000,000)

C. $(5,000,000)

D. $(8,000,000)