Question
The Central Division of AAA, Inc., has operating income of $64,000 on sales revenue of $640,000. Divisional operating assets are $320,000 and management of AAA
The Central Division of AAA, Inc., has operating income of $64,000 on sales revenue of $640,000. Divisional operating assets are $320,000 and management of AAA has determined that a minimum return of 12% should be expected from all investments.
(a.) Using the DuPont model, calculate the Central Division's margin, turnover, and ROI.
(b.) Calculate the Central Division's residual income.
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Core Concepts Of Accounting Information Systems
Authors: Mark G. Simkin, Carolyn A. Strand Norman, Scott Paquette
1st Canadian Edition
