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Question 1 - ROI and Residual income 25 points Produce Incorporated has three divisions-Lettuce, Corn and Broccoli. Information about the company's results are as follows:

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Question 1 - ROI and Residual income 25 points Produce Incorporated has three divisions-Lettuce, Corn and Broccoli. Information about the company's results are as follows: Sales Operating Profit Average Operating Assets Lettuce Division $2,200,000 400,000 1,800,000 Com Division $4.800,000 600,000 3,500,000 Broccoli Division $7,700,000 1.200,000 6,000,000 TOTAL $14.700,000 2,200,000 11,300,000 1 (10 points) Calculate the divisional and total Rol for Produce Incorporated showing the operating margin and the asset turnover rate. 2. (10 points) Calculate the Residual income of the company and the divisions assuming the required ROI was 18% 3. (5 points) Which division is doing best? Why? Which division is contributing most to the company? Why? How would you rank the divisions? Why

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