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Guerlane Fragrance Corporation has a perfume division, Essense, and a cologne division, Karisma. The following information relates to last year's operations at each division. The
Guerlane Fragrance Corporation has a perfume division, Essense, and a cologne division,
Karisma.
The following information relates to last year's operations at each division. The minimum
requiredrate of return is the same for both divisions.
EssenseKarisma
Sales $d
Average operating assets $e
Net operating incomea$
Marginb
Turnoverc
Return on investment ROIf
Residual incomeg
Required:
Compute the unknown quantities above a through g
SHOW YOUR COMPUTATIONS.
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