Question
The following information is available about the status and operations of the Manufacturing Division of Taylor Company, which has a hurdle rate of 5%. Divisional
The following information is available about the status and operations of the Manufacturing Division of Taylor Company, which has a hurdle rate of 5%. Divisional identifiable average assets $ 410,000 Divisional income from operations $ 17,924 Divisional sales revenue $ 371,171
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. (Round your answer to the nearest dollar amount.)
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