Exercise 23-7 Investment Center Performance

Flowers Associates is evaluating the performance of three divisions: Daisies, Pansies, and Tulips.

	Daisies		Pansies		Tulips
Sales	$50,000		$50,000		$50,000
Operating income	$10,000		$10,000		$20,000
Assets invested	$25,000		$12,500		$25,000
Desired ROI	30%		30%		30%

Using the above data, compute the return on investment and residual income for each division. If an amount is zero, enter "0".

	ROI	Residual income
Daisies	%	$
Pansies	%	$
Tulips	%	$

Compare the divisions' performance, and comment on the factors that influenced performance.