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Presented below is selected information for three regional divisions of Medina Company, Contribution margin Controllable margin Average operating assets Minimum rate of return North $300,300

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Presented below is selected information for three regional divisions of Medina Company, Contribution margin Controllable margin Average operating assets Minimum rate of return North $300,300 $140,000 $1,000,000 11 % Divisions West $500,100 $361.100 $1,570,000 15 % South $399,300 $208,600 $1,490,000 9 % Your answer is partially correct. Assume that each division has an investment opportunity that would provide a rate of return of 16%. performance, which division or divisions will probably make the additional investment? North and South to measure performance, which division or divisions will probably make the additional investment

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