The average operating assets and minimum required rate of return of each segment are as follows: Segment Average operating assets (in thousands) Required rate of return Pastry 2,500,000 15% Fruit Juices and Desserts 1,270,000 12% Compute, analyze, and discuss with top management: How much is the ROI and residual income of each segment? How would you compare each segment's performance based on ROI and residual income? What actions would you recommend to improve or maintain each segment's. ROI and residual income? Fast Food 890,000 3%

The average operating assets and minimum required rate of return of each segment are as follows: Segment Average operating assets (in thousands) Required rate of return Pastry 2,500,000 15% Fruit Juices and Desserts 1,270,000 12% Compute, analyze, and discuss with top management: How much is the ROI and residual income of each segment? How would you compare each segment's performance based on ROI and residual income? What actions would you recommend to improve or maintain each segment's. ROI and residual income? Fast Food 890,000 3%

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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am. 103.
3. If management desires a minimum acceptable return on investment of 10%, determine the residual income for each division.
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