Question
F or 2016, the New Products Division of XYZ Company had operating income of $7,000,000 and operating assets of $38,800,000. XYZ has set a target
For 2016, the New Products Division of XYZ Company had operating income of $7,000,000 and operating assets of $38,800,000. XYZ has set a target return on investment (ROI) of 14% for each of its divisions.
Calculate the return on investment and residual income for New Products in 2016. Did the division meet the target ROI?
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The Power Of Accounting What The Numbers Mean And How To Use Them
Authors: Lawrence Lewis
1st Edition
0415884306, 978-0415884303
