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Derkins Clothiers sells a broad line of clothing goods to specialty retail and department stores. For the current year, the company year, the company's
Derkins Clothiers sells a broad line of clothing goods to specialty retail and department stores. For the current year, the company year, the company's Snowshoe Division had the following performance targets: asset turnover, 1.8; profit margin, 8% Actual information concerning the performance of the Snowshoe Division follows: Average total assets for year Sales Operating expenses $6,000,000 12,000,000 11,280,000 a) Did the Snowshoe Division achieve its target objectives for ROI, asset turnover, and profit margin? Where are the most likely areas to improve performance? b) If the company has an overall target return of 14%, what was the Snowshoe Division's residual income for the year?
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