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Prime Manufacturers has 2 investment centers - Division A and Division B. The Current ROI for Division A is 20% and the Minimum required return
Prime Manufacturers has 2 investment centers - Division A and Division B. The Current ROI for Division A is 20% and the Minimum required return is 12. The Current ROI for Division B i3 134 and the Minimum required return is 164. A new product line can be manufactured by either Division A or Division B. The new product line will have a projected ROI of 14% according to the best estimates. Prime Manufacturers will only allow one division to produce the new project. If both divisions' managers have their performance evaluated using ROI then. Both divisions will ask Prime Manufacturers to let them produce the new product. Only Division A will ask Prime Manufacturers to let them produce the new product. Only Division B will ask Prime Manufacturers to let them produce the new product. Neither division will ask Prime Manufacturers to let them produce the new product. None of the above
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