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Assume division 1 of the XYZ Company had the following results as of 12/31/2020: Managements hurdle rate is 8% Sales (CR) $5,000,000 Operating Income (CI)

Assume division 1 of the XYZ Company had the following results as of 12/31/2020: Managements hurdle rate is 8%

Sales (CR)

$5,000,000

Operating Income (CI)

1,000,000

Total assets (CA)

10,000,000

21. What is the divisions Return on Investment (ROI)?

  1. 5%
  2. 10%
  3. 20%
  4. 50%

22. What is the divisions margin?

  1. 5%
  2. 10%
  3. 20%
  4. 50%

23. What is the divisions turnover?

  1. 5%
  2. 10%
  3. 20%
  4. 50%

24. What is the divisions Residual Income (RI)?

  1. $0
  2. $200,000
  3. $500,000
  4. $800,000

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