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of the most profitable division. The three division managers are to choose whether ROI or Rl will be used to measure profitability. In addition, they
of the most profitable division. The three division managers are to choose whether ROI or Rl will be used to measure profitability. In addition, they mu- sincome as operating income and investment as total assets. The following information is available for the year just ended or her division number one. Identify the method for calculating profitability that each manager selected, supporting your answer with appropriate calcul 1 Data Table Ol using gross kot porcentages to two decimal places, XXXS) ) x 100 Gross Book Accumulated Operating Division Value of Assets Depreciation Income Essex $ 137,200 1,150,000 $ 620,000 S ) x 100 = ])x 100 = 1 x 100 = 1 Easton 1,300,000 420,000 161,500 Afton 630,000 298,000 87,800 Cole uses a required rate of return of 8% on investment to calculate RI x 100 = 0 x 100 1 1x 100 = 0 gross book vald Print Done RI division. The three division managers are to choose whether ROI or Rl will be used to measure profitability. In addition, they must decide whether investment income and investment as total assets. The following information is available for the year just ended ar one. Identity the method for calculating profitability that each manager selected, supporting your answer with appropriate calculations Comment on the Data Table kol percentages to two decimal places, XXX%) Accumulated Operating Gross Book Income Division Value of Assets Depreciation Essex 1,150,000 $ 620,000 $ 137 200 Easton 1,300,000 420.000 161 500 Afton 630.000 298,000 87 800 Cole uses a required rate of return of 8% on investment to calculate RI Print Done - strengths and weaknesses of the methods chosen by each manager Begin by secting the formula to computo ROI, thon calculato each division's Rol using cross book value of assets first and then set book value of assets Round the Operca ) x 100 ROI ROI using gross book value of assets Essex ) x 100 = ) x 100 Afton % Easton 5x 190 ROI sing netbook value of assets Essex ) x 100 Easton ) x 100 = Atlon Next, select the formula to compute Ri, then calculate each division's Rl using gross book value of assets fest and then not book value of assets 1 x 100 = Rising gross book value of assots nation Required Each division manager has selected a method of bonus calculation that ranks his or her division number one Identity the method for calculating proftability that each mua strengths and weaknesses of the methods chosen by each manager Next, select the formula to compute Ri, then calculate each division's RI using gross book value of assets first and then not book value of assets RI Rl using gross book value of assets Essex Easton Afton Rl using netbook value of assets Essex Easton ( Alton Now identify the method for calculating profitability that each manager solected Method Chosen Manager Essex Easton Chemin many inter any number in the input fields and then continue to the next question Now Manager Cha From When AL Two The Cheersen
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