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Styles 6 Decentralization and Performance Evaluation 1. Smith Division produces soap and reported sales of $540,000, which generated a net income after tax deduction of
Styles 6 Decentralization and Performance Evaluation 1. Smith Division produces soap and reported sales of $540,000, which generated a net income after tax deduction of $77,900 for 2017. The division did not incur any interest expenditure during the year. Smith Division's invested capital for the year amounted to $820,000. Smith's parent corporation has a required rate of return equal to 10 percent and a cost of capital of 8 percent. How is the division performing if it is evaluated using return on investment
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