The following info is provided for three operating divisions. The minimum accepted rate of return by the investor is 11%.

Division A B __ C __

net income 188,000 534,800 1,694,000

sales 60,000,000 137,600,000 984,000,000

invested assets 1,880,000 3,820,000 15,400,000

Compute Return on Investment for:

a. Division A

b. Division B

c. Division C

Compute Residual Income for:

d. Division A

e. Division B

f. Division C

g. What division looks like the best division?

(8pts)

Question 7 - The following info is provided for three operating divisions. The minimum accepted rate of return by the investor is 11%. Division A B __ C __ net income 188,000 534,800 1,694,000 sales 60,000,000 137,600,000 984,000,000 invested assets 1,880,000 3,820,000 15,400,000 Compute Return on Investment for: a. Division A b. Division B c. Division C Compute Residual Income for: d. Division A e. Division B f. Division C g. What division looks like the best division?