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30 Question 32 (2.1 polhls) Listen Oakmont Company has two divisions, Household Appliances and Construction Equipment. The manager of the Household division is evaluated on
30 Question 32 (2.1 polhls) Listen Oakmont Company has two divisions, Household Appliances and Construction Equipment. The manager of the Household division is evaluated on the basis of ROI, while the manager of the Construction division is evaluated based on residual income. The target return is 12% and the ROI has been 16% for both divisions. Each manager is currently considering a product with a 14% rate of return. According to the current evaluation system, which manager(s) would have incentive to undertake the project? Both managers would have incentive to undertake the project Neither manager would have incentive to undertake the project The Household Appliance division manager would have an incentive to undertake the project, while the manager of the Construction Equipment division would not have an incentive to undertake the project The manager of the Construction Equipment division would have an incentive to undertake the project, while the manager of the Household Appli
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