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Presented below is selected information for three regional divisions of Medina Company. North Contribution margin $300,000 Controllable margin $140,200 Average operating assets $934,667 Minimum rate
Presented below is selected information for three regional divisions of Medina Company. North Contribution margin $300,000 Controllable margin $140,200 Average operating assets $934,667 Minimum rate of return 11% Divisions West $500,000 $359,800 $1,635,455 15 % South $399,300 $209,500 $1,396,667 9% Compute the return on investment for each division. (Round ROI to 0 decimal places, e.g. 15.) North Division West Division South Division e Textbook and Media Compute the residual income for each division. (Round final answers to 0 decimal places, e.g. 1,255.) North Division $ West Division $ South Division $ Assume that each division has an investment opportunity that would provide a rate of return of 16%. (1) If ROI is used to measure performance, which division or divisions will probably make the additional investment? (2) If residual income is used to measure performance, which division or divisions will probably make the additional investment
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