Will the manager of the snack division receive a bonus for

Reference no: EM13594893

The manager of Healthy Snack Division of Fairfax Industries is evaluated on her division's return on investment and residual income. The company requires that all divisions generate a minimum return on invested assets of 8 percent. Consistent failure to achieve this minimum target is grounds for the dismissal of a division manager. The annual cash bonus paid to division managers is 1 percent of residual income in excess of $100,000. The Snack Division's operating margin for the year was $6.5 million, during which time its average invested capital was $50 million.

a.Compute the Snack Division's return on investment and residual income. (Enter your Residual income answer in millions. Omit the "$" & "%" signs in your response.)

Return on investment %
Residual income $ million

b.Will the manager of the Snack Division receive a bonus for her performance? If so, how much will it be? (Omit the "$" sign in your response.)

Reference no: EM13594893

Questions Cloud

In spetember aspen expects to produce 120000 widgets : aspen company produces widgets. auguest budgeted production costs are belowwidgets to be produced 100000direct material

How many grams of acetylene are produced by adding water to : acetylene gas c2h2 is produced by adding water to calcium carbide cac2.cac2 s 2 h2o l -----gt c2h2 g caoh2 aqhow many

A compound that has a molecular ion peak in its mass : question a compound that has a molecular ion peak in its mass spectrum at mass 94 and shows prominent peaks in its ir

A sample of iron absorbs 675 j of heat upon which the : a sample of iron absorbs 67.5 j of heat upon which the temperature increases from 21.5 c to 28.5 c. if the specific

Will the manager of the snack division receive a bonus for : the manager of healthy snack division of fairfax industries is evaluated on her divisions return on investment and

Analyze the passive activity rules as they apply to real : analyze the passive activity rules as they apply to real estate rental activities. in applying the passive activity

Why does the temperature continually decrease as a : why does the temperature continually decrease as a solution containing solute freezes instead of maintaining a constant

Burget clinic uses client-visits as its measure of activity : burget clinic uses client-visits as its measure of activity. during july the clinic budgeted for 2100 client-visits but

In an effusion experiment it was determined that nitrogen : in an effusion experiment it was determined that nitrogen gas n2 effused at a rate 1.812 times faster than an unknown

User Account

All Pages