Campbell Technologies, Inc. has three divisions. Campbell has a desired rate of return of 13.0 percent. The operating assets and income for each division are as follows: Operating Operating Divisions Assets Income Printer $ 580,000 $ 99,760 Copier 850,000 98,600 Fax 400,000 58,000 Total $1,830,000 $256,360 Campbell headquarters has $124,000 of additional cash to invest in one of its divisions. The division managers have identified investment opportunities that are expected to yield the following ROls: Expected ROIS for Additional Divisions Investments Printer 14.5% Copier 13.5% Fax 12.5% Required a-1. Calculate the ROI for each division. a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $124,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $124,000 of investment funds? d. Which division offers the best investment opportunity for Campbell? g. Calculate the residual income: (1) At the corporate (headquarters) level before the additional investment. (2) At the division level before the additional investment. (3) At the investment level. (4) At the division level after the additional investment. Complete this question by entering your answers in the tabs below. Req A1 Req A2 to D Req G1 Req G2 to G4 Calculate the ROI for each division. (Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) ROI % Printer Division Copier Division Fax Division % % Complete this question by entering your answers in the tabs below. Req A1 Req A2 to D Req G1 Req G2 to G4 a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $124,000 of investment funds? c. Based on ROI, which division manager would be least likely to accept the $124,000 of investment funds? d. Which division offers the best investment opportunity for Campbell? Show less a-2. Which division manager is currently producing the highest ROI? Based on ROI, which division manager would be most eager to b. accept the $124,000 of investment funds? Based on ROI, which division manager would be least likely to accept the $124,000 of investment funds? d. Which division offers the best investment opportunity for Campbell? C. Req A1 Req G1 Complete this question by entering your answers in the tabs below. Reg A1 Reg A2 to D Req G1 Req G2 to G4 Calculate the residual income at the corporate (headquarters) level before the additional investment. Residual income Complete this question by entering your answers in the tabs below. Req A1 Req A2 to D Req G1 Req G2 to G4 Calculate the residual income: (Loss amounts should be indicated by a minus sign.) (2) At the division level before the additional investment. (3) At the investment level. (4) At the division level after the additional investment. Show less Residual Income (loss) (2) Printer division Copier division Fax division (3) Printer division Copier division Fax division (4) Printer division Copier division Fax division Req G1 Req G2 to G4 >
