Spring Bulbs operates two divisions, which are treated as investment centres. Data for each division for the
Question:
............................Division T ..................Division I
Net income................ $ 85,000................... $210,000
Total assets............... $255,000................... $840,000
The company's required rate of return is 12%. The president wishes to evaluate the performance of these divisions and is not sure whether to use ROI or RI as the performance measure.
REQUIRED
Which division performed better based on the ROI and RI performance measures?
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Related Book For
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 9781118168875
2nd Canadian Edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
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