olden parochute Chapter o assets ROI= 01/Assets couid increase ., 01/Sales x Sales/OA Responsibility Accounting-Cost Center ldentificatio Each of the following managers has been given certain decision-making authority. Classify each manager according to the type of responsibility center he or she manages a. Manager of Holiday Inn's central reservation office revenve b. Managers of various corporate-owned Holiday Inn locations c. Manager of Holiday Inn corporate divisionIhvestment nlay -Peesi) d. Manager of the housekeeping department at a Holiday Inn_Cosh e. Manager of the Holiday Inn Express corporate division Inveshment f. Manager of the complimentary breakfast buffet at a Holiday Inn Express Return on Investment /Residual Income Consider the following data for Happy Donut's Western Region Sales Operating Expenses Operating Income Operating Assets $8,000,000 7,000,000 1,000,000 5,000,000 esales marsin a. Compute the region's ROI, profit margin, and investment turnover 000, oo eoog ooo assets sales =12.57 b. Show how the ROI is related to the profit margin and investment turnover c. Using a target rate of return of 15%, compute the division's residual income d. Explain how the residual income is related to the ROl calculated in (a) above The division is considering a proposed project with an 18% ROI I. e. If the performance of the division manager is evaluated based on the division ROI and the division manager acts in his/her personal interest, will the division manager accept the proposed project? Why? If the performance of the division manager is evaluated on the residual income and the division manager acts in his/her personal interest, will the division manager accept the proposed project? Why? Il