Question
Fabbri Wares is a division of a major corporation. The following data are for the latest year of operations: Sales $ 9,540,000 Net operating income
Fabbri Wares is a division of a major corporation. The following data are for the latest year of operations:
| Sales | $ | 9,540,000 |
|
| Net operating income | $ | 1,163,880 |
|
| Average operating assets | $ | 3,000,000 |
|
| The company's minimum required rate of return |
| 14 | % |
Required:
a. What is the division's return on investment (ROI)?
b. What is the division's residual income?
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The Essential Handbook Of Internal Auditing
Authors: K. H. Spencer Pickett
1st Edition
0470013168, 978-0470013168
