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THE FOLLOWING INFORMATION APPLIES TO OUESTIONS 11 THROUGH 12, Chocolate Enterprise is a multi-division company. The current ROI for Chocolate Enterprise as a whole is

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THE FOLLOWING INFORMATION APPLIES TO OUESTIONS 11 THROUGH 12, Chocolate Enterprise is a multi-division company. The current ROI for Chocolate Enterprise as a whole is 11% and the Chocolate Enterprise has aminimum required rate of return on all investment of 10%. The most successful division within Chocolate Enterprise is the Boxed Candy Division. Currently the oxed candy division has total assets of $2,000,000 with operating income of S400,000. The manager of the Boxed Candy Division is considering the purchase of a small company called Truffles Inc. The purchase of Truffles Inc. will require ll in all the Chocolate Enterprise Divisions are awarded to managers with increasing an investment of $800,000 and with the synergy between the two companies wi increase the Boxed Candy Division operating income by $76,000. Bonuses ROI's. 11. What is the ROI for the Boxed Candy Division after the purchase of Truffles Inc.? a. b. c. d. 11.00% 13.00% 17.00% 20.00% 12. What is the Residual Income for the Boxed Candy Division after the purchase of Truffles Inc.? a. $196,000. b. $200,000. c. $224,000. d. $504,000

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