Saxwell Corporation has many divisions and evaluates them using ROI. The corporation's expected ROI for each division

Question:

Saxwell has many divisions and evaluates them using ROI. The corporation's expected ROI for each division is 14 percent or above.
____________________________________________ Division 1 ________ Division 2
Earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 720,000 ............ $ 2,400,000
Investment base . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000,000 ............. 15,000,000
Compute the ROI for divisions 1 and 2. Are the divisions meeting the expected ROI? What other information would you want to know about the investment base before comparing division 1 and 2 performance?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...