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I only need help with the Residual Income (Loss) #2 Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets
I only need help with the Residual Income (Loss) #2
Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Fruit Division $ 1,620,000 1,134,000 $ 486,000 $ 4,050,000 Flower Division $ 2,430,000 1,822,500 $ 607,500 $ 2,430,000 Orange has established a hurdle rate of 10 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year. 1-b. Determine which manager seems to be performing better. 2. Suppose Orange is investing in new technology that will increase each division's operating income by $127,000. The total investment required is $2,000,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for each division after the investment is made. 3. Determine whether both managers will support the investment. Answer is not complete. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Req3 Suppose Orange is investing in new technology that will increase each division's operating income by $127,000. The total investment required is $2,000,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for each division after the investment is made. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.))Step by Step Solution
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