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Ontario Company has two divisions with the following results: 00 8 Jackson Canal $300,000 $ 600,eee 180,000 $120, see $ 250,00 $800,eee $2,000,000 Sales revenue
Ontario Company has two divisions with the following results: 00 8 Jackson Canal $300,000 $ 600,eee 180,000 $120, see $ 250,00 $800,eee $2,000,000 Sales revenue Divisional expenses Segment income Average invested assets 35e,eee Ontario Company has a hurdle rate of 10%. a. Calculate the return on investment for each division. (Round your answers to 1 decimal place.) Jackson Canal Return on Investment 15.0 % 12.5% b. Break each division's return on investment down into its component parts using the DuPont method. (Round your "Profit Margin Ratlo" to 2 decimal places and Investment Turnover" to 3 decimal places.) Profit Margin Investment Turnover Jackson Canal c. Calculate the residual income for each division. Residual Income Jackson Canal
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