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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 $ 790,000
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 $ 790,000 Canal $ 610,000 310,000 $ 300,000 $2,100,000 Ontario Company has a hurdle rate of 9%. a. Calculate the return on investment for each division. (Round your answers to 2 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 Margin Investment Turnover Jackson % Canal % c. Calculate the residual income for each division. Residual Income Jackson Canal
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