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1. The following sales and operating information are related to two divisions of Apple Sdn. Bhd. Sales Operating Income Operating Assets Minimum Required Rate of

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1. The following sales and operating information are related to two divisions of Apple Sdn. Bhd. Sales Operating Income Operating Assets Minimum Required Rate of Return Ayfon (RM) 250,000 5,000 30,000 18% Ayndroid (RM) 185,000 3,500 27,000 11% (a) Determine each division's performance using the following method: Return on investment (ROI). (4 marks) ii. Residual income (RI). (4 marks) (b) If the company has to make only one choice of investment, which investment will be the manager's choice? Explain in detail. (3 marks) (c) Explain in detail the following responsibility centers: Cost centre (2 marks) II. Revenue centre. (2 marks) Investment centre (2 marks)

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