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Please answer and label all questions with proper working and legible writing. This is worth 10 percent. Batman Abstract Company has three divisions that operate
Please answer and label all questions with proper working and legible writing. This is worth 10 percent.
Batman Abstract Company has three divisions that operate autonomously. Their results for 2015 are as follows: Sales Contribution margin Operating income Investment base Riddler $5,000,000 1,440,000 1,000,000 9,000,000 Joker Penguin $7,000,000 $10,000,000 1,700,000 3,500,000 1,750,000 2,520,000 10,000,000 14,000,000 The company's desired rate of return is 20%. Required: a. Compute each division's ROL 1.5 marks b. Compute each division's residual income. 4.5 marks Rank each division by both ROI and residual income. 2 marks d. Which division had the best performance in 2015? Why? 2 marksStep by Step Solution
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