Refer to the information in Exercise 24-12. Assume that each of the companys divisions has a target
Question:
Refer to the information in Exercise 24-12. Assume that each of the company’s divisions has a target income at 7% of average assets. Compute residual income for each division.
Data From Exercise 24-12
A manufacturer reports the following for two of its divisions for a recent month. For each division, compute
(1) Return on investment,
(2) Profit margin, and
(3) Investment turnover.
Transcribed Image Text:
Beverage Division Cheese Division Average assets..... $5,000 $10,000 Sales ... 3,000 5,000 Income.. 600 800
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