All Sunshine Enterprises runs a hire car service in three locations London, Oslo and Stockholm The three operating divisions have the following results for the year Required Calculate a) Return on Investment (ROI) b) Residual Income (RI) assuming the required rate of return is 12 c) Return on Sales...

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All Sunshine Enterprises runs a hire car service in three locations: London, Oslo and Stockholm. The three

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All Sunshine Enterprises runs a hire car service in three locations: London, Oslo and Stockholm. The three operating divisions have the following results for the year.

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Required:

Calculate:

a) Return on Investment (ROI)

b) Residual Income (RI) – assuming the required rate of return is 12%

c) Return on Sales (ROS)*

Can be called Return on Revenue Which is the best relative measure for each division?

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Accounting

ISBN: 9781119977186

3rd Edition

Authors: Michael J. Jones

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Question Posted: May 20, 2024 09:01 AM

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All Sunshine Enterprises runs a hire car service in three locations: London, Oslo and Stockholm. The three

Question:

London Oslo Stockholm m Investment 2,000,000 m 1,000,000 m 500,000 m m m Revenue 1,500,000 800,000 300,000 Costs (800,000) (400,000) (135,000) Operating profit 700,000 400,000 165,000

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Accounting

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