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Answer the following questions (1) and (2). 1. What is the most likely reason Mr. Bailey chose the DuPont formula to evaluate the divisions? a.
Answer the following questions (1) and (2). 1. What is the most likely reason Mr. Bailey chose the DuPont formula to evaluate the divisions? a. Mt. Bailey wants to focus on whether the profit centers are spending in accordance with their budgets. b. Mr. Balley believes that the investment turnover will provide a good assessment of each division's profitability, C. Mr. Balley would like to analyze differences in the return on investment across divisions. 2. What is the most likely reason Mr. Bailey chose return on investment to evaluate the company as a whole? a. Mr. Balley would like to determine which division has the highest net income. b. Return on investment will allow Mr. Bailey to measure the income (return) on each dollar invested in the divisions, and decide where to invest additional assets or expand operations. No Transfer Mr. Bailey has prepared the following divisional income statement for you to review, assuming no transfer of excess capacity hours occurs. He has a Included the total amounts for BOR CPAS, Inc. in the rightmost column. Complete the following Divisional Income Statements with your data from the Payroll. OOTA Tu Answer the following questions (1) and (2). 1. What is the most likely reason Mr. Bailey chose the DuPont formula to evaluate the divisions? a. Mt. Bailey wants to focus on whether the profit centers are spending in accordance with their budgets. b. Mr. Balley believes that the investment turnover will provide a good assessment of each division's profitability, C. Mr. Balley would like to analyze differences in the return on investment across divisions. 2. What is the most likely reason Mr. Bailey chose return on investment to evaluate the company as a whole? a. Mr. Balley would like to determine which division has the highest net income. b. Return on investment will allow Mr. Bailey to measure the income (return) on each dollar invested in the divisions, and decide where to invest additional assets or expand operations. No Transfer Mr. Bailey has prepared the following divisional income statement for you to review, assuming no transfer of excess capacity hours occurs. He has a Included the total amounts for BOR CPAS, Inc. in the rightmost column. Complete the following Divisional Income Statements with your data from the Payroll. OOTA Tu
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