Question
The following information is available about the status and operations of the Manufacturing Division of Oakland Company, which has a hurdle rate (minimum required rate
The following information is available about the status and operations of the Manufacturing Division of Oakland Company, which has a hurdle rate (minimum required rate of return) of 6%.
Divisional identifiable average assets | $ | 415,096 |
Divisional income from operations | $ | 20,696 |
Divisional sales revenue | $ | 370,808 |
a. Compute the ROI for the Manufacturing Division. (Round your answer to 1 decimal place.)
b. Break the Manufacturing Division ROI down using the DuPont formula. (Round your answers to 2 decimal places.)
c. Compute the residual income for the Manufacturing Division. (Negative amounts should be indicated by a minus sign. Round your answer to the nearest dollar amount.)
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