Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer ASAP Big Mountain Bikes (BMB) has two divisions: North and South. BMB has a cost of capital of 15 percent and the following
Please answer ASAP
Big Mountain Bikes (BMB) has two divisions: North and South. BMB has a cost of capital of 15 percent and the following selected financial information for its Year 1 activities. 6. What are the ROI's for each division? A. North: 24%; South: 35% B. North: 35%; South: 24% C. North: 50%; South: 36% D. North: 36%; South: 50% 7. What are the residual incomes for each division? A. North: 790 ; South: 450 B. North: 450 ; South: 790 C. North: 400 ; South: 790 D. North: 790 ; South: 400 8. EZHotel is a S\&P 500 technology company that acts as an online platform for vacation rentals, earning 12% service revenues on each vacation rental. Jane Jones is the U.S. Division Manager and has full authority to make all decisions for the U.S. division. The CEO is currently debating how to effectively evaluates Jane Jones' productivity and efficiency. Which of the following is an appropriate management control system for evaluating and compensating Jane Jones? A. Jane Jones should be evaluated based on sales of the U.S. region; Jane Jones should be compensated based on a percentage of vacation rentals for the U.S. region. B. Jane Jones should be evaluated based on sales of the U.S. region; Jane Jones should be compensated based on a percentage of vacation rentals for the North American region. C. Jane Jones should be evaluated based on sales of the North American region; Jane Jones should be compensated based on a percentage of vacation rentals for the U.S. region. D. Jane Jones should be evaluated based on the number of vacation rentals of the North American region; Jane Jones should be compensated based on a percentage of vacation rentals for the North American region Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started