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Numbers File Edit Insert Table Organize Format Arrange View Share Home | C View + 100% Zoom Add Category Assement 4 Part 1 Assessment

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Numbers File Edit Insert Table Organize Format Arrange View Share Home | C View + 100% Zoom Add Category Assement 4 Part 1 Assessment 4 Part 2 Window Help cf_assessment4_template 81% Wed 7:48 PM + T Insert Table Chart Text Shape Media Comment Collaborate Assessment 4 Part 3 Assessment 4 Part 4 Assessment 4 Part 5 Wellness Pharmaceuticals is a small firm specializing in new products. It is organized into two divisions, based on the products they produce. BD Division is smaller and the life of the products it produces tend to be shorter than those produced by the larger PM Division. Selected financial data for the past year is shown below. Divisional investment is as of the beginning of the year. Wellness Pharmaceuticals uses a 9 percent cost of capital and beginning-of-the-year investment when computing ROI and residual income. Ignore income taxes.e building. The following information (in $000s) appears in the accounting records for last year: Allocated Corporate Overhead Cost of Goods Sold Divisional Investment Research and Development Sales SG&A REQUIRED 1. Compute divisional income for the two divisions. BD Division PM Division $660 $1,980 3,520 7,700 9,900 88,000 2,200 3,960 8,800 770 2,200 1,683 2. Calculate the operating margin, which is equivalent to the return on sales, for the two divisions. 3. Calculate ROI for the two divisions. 4. Compute residual income for the two divisions. 5. Assess the financial performance of the two divisions based on your analysis. NOV 17 "C tv A wwwww XLSX Format Organize Sheet Sheet Name Assessment 4 Part 3 Background PM PM Duplicate Sheet Delete Sheet PM PM PM

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