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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
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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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 ROI + % % + RI = 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%.) % % )= RI
Transcribed Image Text: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 ROI + % % + RI = 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%.) % % )= RI
Click Investments has two divisions. Each division's required rate of return is 15%. Planned operating results for 2020 are as follows: (Click the icon to view the planned operating results.) Data table AB Division $ $ Operating income 12,000,000 11,520,000 Investment $ 75,000,000 $ 48,000,000 - X
Transcribed Image Text:Click Investments has two divisions. Each division's required rate of return is 15%. Planned operating results for 2020 are as follows: (Click the icon to view the planned operating results.) Data table AB Division $ $ Operating income 12,000,000 11,520,000 Investment $ 75,000,000 $ 48,000,000 - X
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