A company has the following information: Department A Department B Sales revenue $ 1,020,000 $ 1,530,000 Expenses 765,000 1,147,500 Net operating income $ 255,000 $ 382,500 Average invested assets $ 2,550,000 $ 2,250,000 The hurdle rate of 8%. Required:

Compute the return on investment (ROI) and residual income for each department.

Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)

	Department A		Depatment B
ROI		%		%
Residual Income (Loss)

Req 1B

Determine which manager seems to be performing better.

	Department Aradio button unchecked1 of 2 Department Bradio button unchecked2 of 2