RETURN ON INVESTMENT (ROI)
Instructions: Compute the Return on Investment (ROI) for each of the following divisions of XYZ Company
Division		Income from Operations		Invested Assests		Return on Invested Assets
On Line		$6,800,000		$47,000,000
Promotional		$4,500,000		$25,000,000
Retail		$17,400,000		$125,000,000
		Which Division is the most profitable per dollar invested?
Instructions: Determine the residual Income for each Division--Assume a 9% minimum acceptable return for invested assests
Division		Income from Operations		Minimum Acceptable Income @ 9%		Residual Income
On Line		$6,800,000
Promotional		$4,500,000
Retail		$17,400,000
		Which Division has the most residual income?