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answer for 10-28 pls nagerial Accounting Fall 2020 e. If the vinyl product line manager was able to reduce variable costs per unit by 8%,
answer for 10-28 pls
nagerial Accounting Fall 2020 e. If the vinyl product line manager was able to reduce variable costs per unit by 8%, what would be the new operating income and the new return on investment? 10.28 (LO 3, 4) Excel Evaluating segment performance Mims Corporation recently announced a bonus plan to reward the manager of its most profitable division. The three divisional managers are to decide which performance measure will be used to evaluate profitability. Mims Corporation requires a 10% minimum return on investment. The following information is available for the year just ended. Division Divisional Operating Assets Divisional Operating Income Invested Capital Ashton $900,000 $99,000 $200,000 Drye 820,000 94,300 75,000 Poole 480,000 57,600 120,000 Required a. Based on return on investment, which division performed the best? b. Based on residual income, which division performed the best? c. Assume that Mims Corporation's weighted-average cost of capital is 8% and its tax rate is 30%. Based on economic value added, which division performed the best? d. What measure will each division manager select? What should the upper management of Mims Corporation do? 10.29 (LO 3, 4) Excel Evaluating segment performance Hannalinn Corporation operates three divisions-Archer, Barrett, and Corvell. Division managers are evaluated based on the division's return on investment, and historically, the Corvell division has consistently outperformed the other two divisions. Hannalinn's senior management team has recently discovered that the Corvell Division manager has chosen not to invest in projects that would have been beneficial to the organization as a whole, and they are 9-56 PMStep by Step Solution
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