Return on Investment

The income from operations and the amount of invested assets in each division of Shiner Industries are as follows:

Residual Income

The income from operations and the amount of invested assets in each division of Shiner Industries are as follows:

	Income from Operations		Invested Assets
Retail Division	$64,800		$360,000
Commercial Division	73,600		460,000
Internet Division	73,600		320,000

Assume that management has established an 8% minimum acceptable return for invested assets.

a. Determine the residual income for each division.

	Retail Division			Commercial Division			Internet Division
Income from operations	$64,800			$73,600			$73,600
Minimum amount of income from operations	$______________			$______________			$______________
Residual income	$______________			$______________			$______________

b. Which division has the most residual income? Commercial OR Retail OR Internet

a. Compute the return on investment for each division. Round to the nearest whole number.

Division	Percent
Retail Division	_______________%
Commercial Division	_______________%
Internet Division	_______________%

b. Which division is the most profitable per dollar invested? Commercial OR Internet OR Retail division