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Given the following performance report information, answer the following questions: Calculate each division's ROI, sales margin, capital turnover margin and residual income. Assume a specified
Given the following performance report information, answer the following questions: Calculate each division's ROI, sales margin, capital turnover margin and residual income. Assume a specified target rate of return of 16%. Top management has extra funds to invest, and uses ROI to evaluate investments. Which division will most likely receive those funds? Why? Why is one division's ROI is higher than the other? What does this mean about the reason for the difference in profitability between the two divisions? Are either of the divisions not earning income at a rate that meets management's expectations? How might this information impact the decision about where management might invest extra funds
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