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Sheridan Corporation recently announced a bonus plan to reward the manager of its most profitable division. The three divisional managers are to decide which performance
Sheridan Corporation recently announced a bonus plan to reward the manager of its most profitable division. The three divisional managers are to decide which performance measure will be used to evaluate profitability. Sheridan Corporation requires a 10% minimum return on investment. The following information is available for the year just ended. Divisional Operating Assets Divisional Operating Income Invested Capital Division Ashton $970,000 $113,490 $207,000 Drye 890,000 108.580 77,000 Poole 535,000 67,945 127,000 (a) Calculate return on investment. (Round ROI to 2 decimal places, e.g. 5.12%.) Return on Investment % Ashton % Drye % Poole
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