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Austan Ceramics, a division of Anderson Corporation, has an operating income of 501,000 and total assets of $450,000. The required rate of retum for
Austan Ceramics, a division of Anderson Corporation, has an operating income of 501,000 and total assets of $450,000. The required rate of retum for the company is 11% The company is evaluating whether it should use retum en investmen sincome () as a measurement of performance for its division managers. The manager of Austen Ceramics has the opportunity to undertake a new project that will require an investment of $150,000. The investment would ear $22,500 for the company Read the marees
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