Question
The financial results for Beckley Division of Bunnell Enterprises are summarised below. The manager of the division is evaluated on the basis of controllable return
The financial results for Beckley Division of Bunnell Enterprises are summarised below. The manager of the division is evaluated on the basis ofcontrollable return on investment (CROI). Bunnell Enterprises define CROI asthe controllable operating profit as a percentage of total assets. They also define the controllable residual income (CRI) as the controllable operating profit less a capital charge. The capital charge is 8% of the total asset.
30% of the marketing and sales expenses are deemed not controllable by the divisional manager.
* 30% of the marketing and sales expenses are deemed not controllable by the divisional manager.
The CROI and CRI for 2022 respectively would be nearest to:
Group of answer choices
23% and $5 100
16% and $2 800
18% and $3 400
21% and $4 500
29% and $9 344
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