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Presented here is selected information for three regional divisions of Bramble Company. Divisions North West South Contribution margin $300,700 $499,800 $400,600 Controllable margin $140,000 $359,100
Presented here is selected information for three regional divisions of Bramble Company. Divisions North West South Contribution margin $300,700 $499,800 $400,600 Controllable margin $140,000 $359,100 $211,400 Average operating assets $1,000,000 $1,890,000 $1,510,000 Minimum rate of return 11 % 15 % 8 %Compute the return on investment for each division. North Division West Division South Division Compute the residual income for each division. 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 R01 is used to measure performance, which division or divisions will probably make the additional investment? \"0\"\" (2} If residual income is used to measure performance, which division or divisions will probably make the additional investment? 4- or
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