Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division: Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Fruit Division $ 1,680,000 1,000,000 s 672,000 $ 5,600,000 Flower Division $ 2,520,000 1,890,000 $ 630,000 $ 2,520,000 Orange has established a hurdle rate of 10 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last year, 1-b. Determine which manager seems to be performing better. 2. Suppose Orange is investing in new technology that will increase each division's operating income by $129,000. The total investment required is $2,100,000, which will be split evenly between the two divisions. Calculate the ROI and residual income for each division after the investment is made. 3. Determine whether both managers will support the investment Complete this question by entering your answers in the tabs below. Reg 1A Reg 1B Reg 2 Reg 3 Compute each division's return on investment (ROI) and residual income for last year. (Enter your ROI answers as a percentage rounded to two decimal places, (.e., 0.1234 should be entered as 12.34%.)) Fruit Division Flower Division ROI Ses Saved Orange has established a hurdle rate of 10 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for last ye 1-b. Determine which manager seems to be performing better. 2. Suppose Orange is investing in new technology that will increase each division's op investment required is $2,100,000, which will be split evenly between the two divisions each division after the investment is made. 3. Determine whether both managers will support the investment Complete this question by entering your answers in the tabs below. Req 1A Req 1B Reg 2 Reg 3 Compute each division's return on investment (ROI) and residual income for last year. (Ente percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) ROI Fruit Division % Flower Division % Residual Income (Loss) Orange has established a hurdle rate of 10 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income for la 1-b. Determine which manager seems to be performing better. 2. Suppose Orange is investing in new technology that will increase each division investment required is $2,100,000, which will be split evenly between the two divi each division after the investment is made. 3. Determine whether both managers will support the investment. es Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Reg 2 Reg 3 Determine which manager seems to be performing better. OFruit Division OFlower Division 1-a. Compute each division's return on investment (ROI) and residual income for last 1-b. Determine which manager seems to be performing better. 2. Suppose Orange is investing in new technology that will increase each division's investment required is $2,100,000, which will be split evenly between the two divisio each division after the investment is made. 3. Determine whether both managers will support the investment. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2 Reg 3 Suppose Orange is investing in new technology that will increase each division's operating investment required is $2,100,000, which will be split evenly between the two divisions. income for each division after the investment is made. (Enter your ROI answers as a perc places, (i.e., 0.1234 should be entered as 12.34%.)) Flower Division ROI Residual Income (Loss) Fruit Division % % Orange has established a hurdle rate of 10 percent. Required: 1-a. Compute each division's return on investment (ROI) and residual income fo 1-b. Determine which manager seems to be performing better. 2. Suppose Orange is investing in new technology that will increase each divisi investment required is $2,100,000, which will be split evenly between the two c each division after the investment is made. 3. Determine whether both managers will support the investment. Complete this question by entering your answers in the tabs below. Req 1A Reg 1B Req 2 Reg 3 Determine whether both managers will support the investment. Fruit Division Manager Flower Division Manager
