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Exercise 10-20 Presented below is selected information for three regional divisions of Medina Company North $299,000 $139,200 South $400,300 $209,100 West Contribution margin Controllable margin

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Exercise 10-20 Presented below is selected information for three regional divisions of Medina Company North $299,000 $139,200 South $400,300 $209,100 West Contribution margin Controllable margin Average operating 500,300 $360,300 928,000 1,441,200 $1,394,000 assets Minimum rate of return 10% 13 % 15 % Compute the return on investment for each division. (Round ROI to 0 decimal places, e.g. 15.) North Division West Division South Division Compute the residual income for each division. (Round final answers to 0 decimal places, e.g. 1,255.) North Division $ West Division South Divisions Assume that each division has an investment opportunity that would provide a rate of return of 16% (1) If ROI is used to measure performance, which division or divisions will probably make the additional investment? (2) If residual income is used to measure performance, which division or divisions will probably make the additional investment

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