Question
Supermart provides the following information on its two investment centers. Investment Center Sales Income Average Assets Electronics $ 80,000,000 $ 5,760,000 $ 32,000,000 Sporting Goods
Supermart provides the following information on its two investment centers.
| Investment Center | Sales | Income | Average Assets |
|---|---|---|---|
| Electronics | $ 80,000,000 | $ 5,760,000 | $ 32,000,000 |
| Sporting Goods | 40,000,000 | 4,080,000 | 24,000,000 |
Required: 1. Compute return on investment for each center. 2. Assuming a target income of 12% of average assets, compute residual income for each center
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Accounting Information Systems Controls And Processes
Authors: Leslie Turner, Andrea B Weickgenannt, Mary Kay Copeland
4th Edition
1119577810, 9781119577812
