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Exercise 18.19 Spring Bulbs operates two divisions, which are treated as investment centres. Data for each division for the current year are as follows (in
Exercise 18.19 Spring Bulbs operates two divisions, which are treated as investment centres. Data for each division for the current year are as follows (in '000s): Net income Total assets Division T $89,600 $233,000 Division I $208,600 $827,000 The company's required rate of return is 11%. The president wishes to evaluate the performance of these divisions and is not sure whether to use ROI or RI as the performance measure. Which division performed better based on the ROI and RI performance measures? (Round ROI to 1 decimal place, e.g. 15.2% and RI to 0 decimal places, e.g. 5,275.) Division T Division I ROI % % RI (in '000s) Performance measures Based on ROI Based on RI
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