The following information is available for the three divisions of the Pompano Company: Required: a. Determine the

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The following information is available for the three divisions of the Pompano Company:

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Required:

a. Determine the return on investment for each division.

b. Rank the three divisions assuming they are considered profit centers.

c. Rank the three divisions assuming they are considered investment centers and performance is evaluated based on return on investment.

d. Why do the rankings for parts b and c differ?

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Introduction To Management Accounting A User Perspective

ISBN: 9780130327505

2nd Edition

Authors: Michael L Werner, Kumen H Jones

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Question Posted: May 27, 2024 02:12 AM

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The following information is available for the three divisions of the Pompano Company: Required: a. Determine the

Question:

Amount invested in each division: Division A Division B $3,255,000 $2,145,000 Division C $3,587,000 Segment margin of each division: Division A $553,350 Division B $407,550 Division C $573,920 The required rate of return for the company is 16 percent.

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Introduction To Management Accounting A User Perspective

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