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Ontario Company has two divisions with the following results: Sales revenue Divisional expenses Segment income Average invested assets Jackson $320,000 180,000 $ 140,000 $ 810,000
Ontario Company has two divisions with the following results: Sales revenue Divisional expenses Segment income Average invested assets Jackson $320,000 180,000 $ 140,000 $ 810,000 Canal S 630,000 350,000 S 280,000 $2,000,000 Ontario Company has a hurdle rate of 8%. a. Calculate the return on investment for each division. (Round your answers to 1 decimal place.) Return on Investment Jackson Canal b. Break each division's return on investment down into its component parts using the DuPont method. (Round your "Profit Margin Ratio" to 2 decimal places and "Investment Turnover" to 3 decimal places.) Profit Investment Turnover Jackson Canal c. Calculate the residual income for each division. Residual Income Jackson Canal
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