Concept explainers
1.
To calculate: The
2.
The sales margin of each division.
3.
To calculate: The capital turnover of each division.
4.
To conclude: The results of ROI by using expanded ROI formula.
5.
To calculate: The residual income of each division.
6.
To explain: The way to measure total assets and the measurement choices and some of the pros and cons of those choices.
7.
To describe: The factors which management takes into account for setting the minimum target
8.
To explain: The reason behind using RI rather than ROI as a performance measure.
9.
To explain: The reason for the insufficiency of budget versus actual performance reports are for evaluating the performance of investment centers.
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