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Required: 1 . Compute each division's margin, turnover, and return on investment ( ROI ) . 2 . Compute each division's residual income ( loss
Required:
Compute each division's margin, turnover, and return on investment ROI
Compute each division's residual income loss
Assume each division is presented with an investment opportunity yielding a rate
of return.
a If performance is being measured by ROI, which division or divisions will accept
the opportunity?
b If performance is being measured by residual income, which division or divisions
will accept the opportunity?
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