Question 5 part three

Question 5 of 5 3.33/5 Show Attempt History Current Attempt in Progress Presented below is selected information for three regional divisions of Medina Company Contribution margin Controllable margin Average operating assets Minimum rate of return North $299,000 $139,500 $930,000 13 % Divisions West $500,300 $360,000 $1,440,000 15 % South $400,300 $208,500 $1,390,000 10 % (a) Your answer is correct Compute the return on investment for each division North Division 15 West Division 25 Your answer is correct. Compute the return on investment for each division North Division 15 % West Division 25 %6 South Division 15 96 e Textbook and Media Attempts: 1 of 5 used (6) Your answer is correct Crite the freach volan Question 5 of 5 3.33/5 Your answer is correct. Compute the residual income for each division North Division 5 18600 West Division S 144000 South Division $ 69500 e Textbook and Media Attempts: 2 of 5 used V (c) Assume that each division has an investment opportunity that would prov de a rate of return o 16% (1) ROI used to measure performance, which division or divisions will probably make the additional Investment? (2) If residual income is used to measure performance, which division or divisions will probably make the additional investme e O Question 5 of 5 3.33/5 VOLTI South Division $ 69500 eTextbook and Media Attempts: 2 of 5 used 10 Assume that each division has an investment opportunity that would provide a rate of retum of 16% performance, which division or divisions will probably make the additional investment? to measure performance, which division or divisions will probably make the additional investment eTextbook and Media Savetor te Attempts:O of Sused Submit