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Candy company has two divisions- chocolate and caramel. Information about the company's results are as follows: Chocolate division $8,000,000 1,000,000 caramel division total $20,000,000 3,000,000

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Candy company has two divisions- chocolate and caramel. Information about the company's results are as follows: Chocolate division $8,000,000 1,000,000 caramel division total $20,000,000 3,000,000 16,000,000 $12,000,000 Sales Operation profit Average operating assets 5,000,000 2,000,000 11,000,000 1. Calculate the divisional and total ROI for Candy company showing the operating margin and the asset turnover rate 2. Calculate the residual income of the company and the divisions assuming the required ROI was 15% 3. Which division is doing better? Why? Which division is contributing more to the company? Why

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