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please help UT 4. (10 points) Consider the following data for the UT & AZ divisions of Southwest Co. AZ Sales $ 4,000,000 $ 2,000,000
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UT 4. (10 points) Consider the following data for the UT & AZ divisions of Southwest Co. AZ Sales $ 4,000,000 $ 2,000,000 Cost of Goods Sold 1,500,000 400,000 Operating Income 750,000 450,000 Investment in assets 6,250,000 2,500,000 The Southwest's required rate of return is 10%. Show your work to support the following calculations a. Calculate the ROI for each division b. Calculate the Residual Income (RI) for each division C. Calculate the Return on Sales (ROS) for each division d. Both division managers have bonuses tied to short-term Operating Income measures. If both managers are presented with an opportunity to invest in a project that is estimated to achieve an ROI of 15%, what is each manager likely to decide regarding the proposed project? UT manager will AZ manager will Step by Step Solution
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