AutoSave O H O Ch10WrittenHW 2) Search At : File Home Insert Draw Page Layout Formulas Data Review View Help Comments Share X = - 10 AA Nial Insert >> 2 Wrap Text General It 27 FO) EX De ata V Paste BIU A Merge & Center Conditiona Fomatas Call Formatting Table Sty as Sot find a Filter Salect Analyza Data Sanity Farmat O Un. Cinhoan Font Augnment Number Styles Editing Anayas Sensitivity A12 VX Xfx A 1 N P R S B D E F H 1 J 1 Compare ROI and residual income. 2 3 "E10.20 (LO 5), AN Presented here is selected information for three regional divisions of Medina Company, 4 Disions North West South 6 Contribution margin $300.000 $500.000 $400.000 7 Controllable margin $140 000 $360 DOO $210 000 8 Average operating assets $1.000.000 $2.000.000 $1.500.000 9 Minimum rate of retum 13% 18% 10% 10 11 Instructions (5 Points uuch) 12 13 Compute the return on investment for each division, 14 Compute the residual income for each division. 15 Assume that each division has an investment opportunity that would provide a rate of return of 16% 18 if ROI is used to measure performance, which division or divisions will probably make the additional investment? 17 it residual income is used to measure performance, which division or divisions will probably make the additional investment? 18 19 20 5 Brason8BTBB128485%mi8% 22 23 20 27 28 29 3D 31 32 33 34 35 36 37 20 P101 P106 E10.20 10.21 Acceclity Investigate Read , 1 Tos