Cushions ltd had three divisions: Hard, Medium and Soft. Corporate expenses of $36,000 are allocated to divisions based on sales. Data for the current quarter are as follows:

Sales Direct Viarable costs Direct fixed costs

Hard 36,000 21,600 6,000

Medium 60,000 30,000 8,400

Soft 48,000 24,000 12,000

Required:

Prepare division performance report .

The following data relate to the Chinese Division of Chee Incorporated.

Sales 180,000

Direct variables costs 60,000

Direct fixed costs 40,000

Average invested capital 200,000

Require rate of return 20%

Required: Deterimin

A. The return on investment

B. The residual income