Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6. The following sales and operating information are related to three divisions of Ubiquitous Sdn. Bhd. Laptop Smartphone Tablet (RM) (RM) Sales 396,000 460,000 526.000

image text in transcribed

6. The following sales and operating information are related to three divisions of Ubiquitous Sdn. Bhd. Laptop Smartphone Tablet (RM) (RM) Sales 396,000 460,000 526.000 Operating income 20.800 34.000 45,000 Operating assets 60,000 237,000 352,000 Minimum required 12% 10% 19% rate of return (RM) Required: (a) Determine each department's performance using the following method: i Return on investment (ROI). (6 marks) Residual income (RI) (6 marks) (b) If the company required a minimum of 10% return on investment, which divisions are currently performing in accordance to the company's requirement? Justify your answer based on your answer in 3(a). Conclude your argument with the best performing department between the three, taking into account both their ROI and RI (6 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Accounting questions

Question

What is a site survey and why is it important?

Answered: 1 week ago