Requirement a. What is the current ROI for each division? Begin by selecting the formula to calculate ROI, then compute the ROI for each division. Division A Division B Division A Division B + Division A Division B + % % + ▼ = = = Requirement b. What is the current residual income for each division? Begin by selecting the formula to calculate the residual income (RI), then compute the RI for each division. X X ROI X % % % % ) = )= ) = Requirement c. Click is planning an expansion that will require each division to increase its investments by $23,000,000 and its income by $4,500,000. Assuming the managers are evaluated on either ROI or residual income, which division (if either) is pleased with the expansion? Begin by calculating the revised ROI and RI for each division. (Round each percentage to the nearest tenth percent, X.X%.) ROI RI RI

Requirement a. What is the current ROI for each division? Begin by selecting the formula to calculate ROI, then compute the ROI for each division. Division A Division B Division A Division B + Division A Division B + % % + ▼ = = = Requirement b. What is the current residual income for each division? Begin by selecting the formula to calculate the residual income (RI), then compute the RI for each division. X X ROI X % % % % ) = )= ) = Requirement c. Click is planning an expansion that will require each division to increase its investments by $23,000,000 and its income by $4,500,000. Assuming the managers are evaluated on either ROI or residual income, which division (if either) is pleased with the expansion? Begin by calculating the revised ROI and RI for each division. (Round each percentage to the nearest tenth percent, X.X%.) ROI RI RI

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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