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ABC Company operates two divisions with the following operating information for the month of May: Division 1: sales, $188,000; operating income, $72,380; operating assets,
ABC Company operates two divisions with the following operating information for the month of May: Division 1: sales, $188,000; operating income, $72,380; operating assets, $470,000. Division 2: sales, $114,000; operating Income, $60,876; operating assets, $570,000. ABC Company expects a minimum return of 10% should be earned from all investments. Required: a. Prepare ABC Company's ROI analysis using the DuPont model for each division. (Round Turnover rate answers to one decimal place. Round Margin and ROI answers to the nearest whole percentage.) DuPont Performance Analysis: Revenues Operating Income Operating Assets Margin Turnover ROI Division 1 b. Calculate each division's residual Income. Residual Income Division 1 Division 2 Division 2 % % turns % turns %
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