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Orange Corp. has two divisions: Fruit and Flower. The following information for the past year available for each division: Frui 1.020 000 lowe 530 000
Orange Corp. has two divisions: Fruit and Flower. The following information for the past year available for each division: Frui 1.020 000 lowe 530 000 Sales revenue Cost of goods sold and operating expenses S ,147,500 765,000 Net operating income 255,000 382,500 2,550,000 Average invested assets 2,250,000 Orange has established a hurdle rate of 8 percent. eCompute 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, (l.e., 0.1234 should be entered as 12.34%.) Fruit Division Flower Division % ROI Residual Income (Loss) performing better. 1-b, Determine which manager seems to Flower Division Fruit Division 2. Suppose Orange is investing i $2,100,000, which will be split evenly between the two divisions. new technology that will increase each division's operating income by $132,000. The total investment required Calculate the ROI and retun on investment for each division after the investment is made. (Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)) Fruit Division Flower Division ROI Residual Income (Loss)
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