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Following is information for two division of Swain Company: Division X Y Net income $42,000 $70,000 Capital investment $200,000 $350,000 Required: a. If the company

Following is information for two division of Swain Company:

Division

X Y

Net income $42,000 $70,000

Capital investment $200,000 $350,000

Required:

a. If the company charges each division 10% for the capital employed, compute residual income for each division.

b. Compute the ROI for each division.

c. Which division is performing better?

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