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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
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)
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