Cookies and Cream Milkshakes are my Favorite (CCMF) has three investment centers within their organization. The ROI achieved by each division is provided below:   Division Operating Income Assets Division A $160,000 $800,000 Division B  $57,600 $320,000 Division C $81,000 $540,000   CCMF has an additional $200,000 to invest in one of their divisions. Which division with CCMF invest in, and how much operating income will be generated?    Cookies and Cream Milkshakes are my Favorite (CCMF) has three investment centers within their organization. The ROI achieved by each division is provided below:    Division Operating Income Assets Division A $160,000 $800,000 Division B  $57,600 $320,000 Division C $81,000 $540,000   CCMF has an additional $200,000 to invest in one of their divisions. Which division with CCMF invest in, and how much operating income will be generated?    CCMF will invest in Division C; it will earn operating income of $30,000 CCMF will invest in Division B; it will earn operating income of $36,000 CCMF will invest in Division C; it will earn operating income of $200,000 CCMF will invest in Division A; it will earn operating income of $40,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 4TIF: The three divisions of Yummy Foods are Snack Goods, Cereal, and Frozen Foods. The divisions are...
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Cookies and Cream Milkshakes are my Favorite (CCMF) has three investment centers within their organization. The ROI achieved by each division is provided below:

 

Division Operating Income Assets
Division A $160,000 $800,000
Division B  $57,600 $320,000
Division C $81,000 $540,000

 

CCMF has an additional $200,000 to invest in one of their divisions. Which division with CCMF invest in, and how much operating income will be generated? 

 

Cookies and Cream Milkshakes are my Favorite (CCMF) has three investment centers within their organization. The ROI achieved by each division is provided below: 

 

Division Operating Income Assets
Division A $160,000 $800,000
Division B  $57,600 $320,000
Division C $81,000 $540,000

 

CCMF has an additional $200,000 to invest in one of their divisions. Which division with CCMF invest in, and how much operating income will be generated? 

 

CCMF will invest in Division C; it will earn operating income of $30,000

CCMF will invest in Division B; it will earn operating income of $36,000

CCMF will invest in Division C; it will earn operating income of $200,000

CCMF will invest in Division A; it will earn operating income of $40,000

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