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Saxwell Corporation has many divisions and evaluates them using ROI. The corporation's expected ROI for each division is 14 percent or above. Earnings Investment
Saxwell Corporation has many divisions and evaluates them using ROI. The corporation's expected ROI for each division is 14 percent or above. Earnings Investment base Division 1 $ 720,000 6,000,000 Division 2 $ 2,400,000 15,000,000 a-1. Compute the ROI for divisions 1 and 2. a-2. Are the divisions meeting the expected ROI? b. What other information would you want to know about the investment base before comparing divisions 1 and 2 performance? Complete this question by entering your answers in the tabs below. Required A1 Required A2 Required B What other information would you want to know about the investment base before comparing divisions 1 and 2 performance? Other information Investment base of other division Earnings of other division How the base was measured and the age of the investments Return of investment of similar industry
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