ROI performance measures based on historical cost and current cost. Nature's Elixir Cor- poration operates three divisions that process and bottle natural fruit juices. The historical-cost accounting system reports the following information for 2008:

REQUIRED 1. Compute the ROI ratio (operating income to total assets cost measures. Comment on the results.
2. Use the approach in Exhibit 24-3 (p. 1149) to com rating current-cost estimates as of 2008 for amo Comment on the results.

3. What advantages might arise from using current-cost asset measures as compared with historical-cost measures for evaluating the performance of the managers of the three divisions?LO1

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Passion Fruit Division Kiwi Fruit Division Mango Fruit Division Revenues $1,000,000 $1,400,000 $2,200,000 Operating costs (excluding plant amortization) 600,000 760,000 Plant amortization 140,000 200,000 Operating income $ 260,000 $ 440,000 Current assets $ 400,000 $ 500,000 Long-term assets-plant 280,000 Total assets $ 680,000 1,800,000 $2,300,000 1,200,000 240,000 $ 760,000 $ 600,000 2,640,000 $3,240,000