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Flamengo Co is a sporting goods manufacturing The Basketball Division so far this year has the following performance numbers: Basketball Division Operating $76 mil Income

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Flamengo Co is a sporting goods manufacturing The Basketball Division so far this year has the following performance numbers: Basketball Division Operating $76 mil Income Operating $627 mil Assets The basketball division has the opportunity to invest in two projects for the coming year. The investment required and the returns are as follows: Project Project 11 Investment $11 mil $18 mil Operating $12 mil Income $1.7 mil The division has the approval to request up to $30 million in new investment capital Corporate HQ requires that all investments earn at least 10%. Any capital not used by a division is invested by HQ caming the minimum rate of retum. Question: How much the company would lose in dollars if the manager focuses only on divisional profitability

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