Question
Division A at Smith Co. produces four different products. There are no interrelationships between the products, and the assets used to manufacture each product could
Division A at Smith Co. produces four different products. There are no interrelationships between the products, and the assets used to manufacture each product could be sold for their net book values. Data for the coming year are as follows:
|
| Product A | Product B | Product C | Product D |
| Income | $301792 | $88486 | $387077 | $172022 |
| Assets | 1497372 | 909886 | 2537268 | 1225563 |
If the Division A manager decides to dispose of product B by selling the assets and returning the cash proceeds on sale of the assets to the company, what would be the resulting overall divisional ROI?
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Financial Accounting Information For Decisions
Authors: Robert w Ingram, Thomas L Albright
6th Edition
9780324313413, 324672705, 324313411, 978-0324672701
