1A) Jordan Inc. had $620,000 in invested assets, sales of $680,000, operating income of $150,000, and a desired minimum return on investment of 15%.

Compute the investment turnover for Jordan. (round your answer to two decimal points. E.g., 5.06).

answer choices

1.10

22.05

24.19

24.19

1B) Jordan Inc. had $620,000 in invested assets, sales of $680,000, operating income of $150,000, and a desired minimum return on investment (DROI) of 15%.

Compute the residual income for Jordan.

answer choices

$93,000

$57,000

$36,000

$150,000

2A) Rangoon Inc. has provided the following divisional data:

	North Division	South Division
Operating income	$450,000	$470,000
Invested assets	$1,200,000	$1,500,000
Desired minimum return on investment	15%

Compute ROI for (round percentages to two decimal points e.g., 10.25%):

1. North division: __ %
2. South division: __%

Choose from the following phrases to fill in the blanks:

South, North, higher, lower

Rangoon should give priority to the _____ division for expanding operation because its rate of return on investment is___ than the ___ division.

2B) Rangoon Inc. has provided the following divisional data:

	North Division	South Division
Operating income	$450,000	$470,000
Invested assets	$1,200,000	$1,500,000
Desired minimum return on investment	15%

Compute Residual income for:

1. North division: __$
2. South division: __$