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10,00 points Problem 12-4 Comparing Performance Using ROI (LO2 CCA, 6) Guenther Corporation uses the return on investment (ROI) measure to evaluate its managers. A
10,00 points Problem 12-4 Comparing Performance Using ROI (LO2 CCA, 6) Guenther Corporation uses the return on investment (ROI) measure to evaluate its managers. A summary of the performance of two divisions is given below: Division A Division B Average operating assets 190,000 220,000 Net income 22,800 24,200 The minimum required return on operating assets for Guenther Corporation is 9%. Required: 1-a. Compute the return on investment of Division A and Division B. Division A Division B Return on investment 1-b. According to Guenther's senior management, which division is the better performer? Division A O Division B 2-a. Compute the residual income of Division A and Division B. Division A Division B Residual income
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