Question 12 (2.5 points) Chocolate Enterprise is a multi-division company. The current ROI for Chocolate Enterprise as a whole is 11%, and Chocolate Enterprise has a minimum required rate of return on all investments of 10%. Currently the Boxed Candy division has average total assets of $2,000,000 with operating income of $400,000. The manger of the Boxed Candy division is considering the purchase of a small company called Truffles Inc. The purchase of Truffles Inc. will require an investment of $800,000 and will increase the Boxed Candy division's operating income by $96,000. Bonuses in all the Chocolate Enterprise divisions are awarded based on the difference between that division's ROI and the ROI of Chocolate Enterprise as a whole. The more the division's ROI exceeds the Enterprise's as a whole, the greater the manager's bonus 6. The ROI for the Boxed Candy division, after the purchase of Truffles Inc. would be: 18% 20% O 11% Previous Page Next Page Page 12 of MacBook Air # w