23.A Compare ROI and deal income ILOSAN Delby Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customers' lots. Delby expanded into the precut housing market when it acquired Jensen Company, one of its suppliers. In this market, various types of lumber are precut into the appropriate lengths, banded into packages, and shipped to customers' lots for assembly. Delby designated the Jensen Division as an investment center Delby uses return on investment (ROD) as a performance measure with investime defined as average operating Management bonuss e d in puro ROL All investments are expected to ma minimum of 1 Jensen's Rol hasanped from 2015 235 was quired Jensen had an investment opportunity in 2014 that had an estimated ROI of 19 Jensen management decided at the time because it beloved the vesent would decrease the diviseve ROL Selected financial information for lenses are presented below. The division's average operating assets were 512,300.0 for the year 2014 JENSEN DIVISION Selected Financial Information For the Year Ended December 11, 2014 Sales $26.000.000 Contribution margin 100 Controllable margin 2.5 Instructions (3) Calculate the following performance measures for 2014 for the Jensen Division 1. Return on investment (ROD) 2. Residual income Would the management of Jensen Division have been more likely to accept the investment opportunity it had in 2014 if residual income were used as a performance measure instead of ROI? Explain you 23.A Compare ROI and deal income ILOSAN Delby Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customers' lots. Delby expanded into the precut housing market when it acquired Jensen Company, one of its suppliers. In this market, various types of lumber are precut into the appropriate lengths, banded into packages, and shipped to customers' lots for assembly. Delby designated the Jensen Division as an investment center Delby uses return on investment (ROD) as a performance measure with investime defined as average operating Management bonuss e d in puro ROL All investments are expected to ma minimum of 1 Jensen's Rol hasanped from 2015 235 was quired Jensen had an investment opportunity in 2014 that had an estimated ROI of 19 Jensen management decided at the time because it beloved the vesent would decrease the diviseve ROL Selected financial information for lenses are presented below. The division's average operating assets were 512,300.0 for the year 2014 JENSEN DIVISION Selected Financial Information For the Year Ended December 11, 2014 Sales $26.000.000 Contribution margin 100 Controllable margin 2.5 Instructions (3) Calculate the following performance measures for 2014 for the Jensen Division 1. Return on investment (ROD) 2. Residual income Would the management of Jensen Division have been more likely to accept the investment opportunity it had in 2014 if residual income were used as a performance measure instead of ROI? Explain you