Johnson Company has two sources of funds: long term debt and equity capital. Johnson Company has profit

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Johnson Company has two sources of funds: long term debt and equity capital. Johnson Company has profit centers in the following locations with the following net incomes and total assets:

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a. Calculate ROI for each profit center and rank them from highest to lowest based on ROI.

b. Calculate residual income for each profit center based on a desired ROI of 5% and rank them from highest to lowest based on residual income.

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Managerial Accounting For Undergraduates

ISBN: 9781618531124

1st Edition

Authors: Christensen, Theodore E. Hobson, L. Scott Wallace, James S.

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