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The following information pertains to Beta Division: Asset Base Operating Income Target ROI set by Corporate Office Margin of Beta Division $360,000 $45,000 15%
The following information pertains to Beta Division: Asset Base Operating Income Target ROI set by Corporate Office Margin of Beta Division $360,000 $45,000 15% 20% The division's manager has an opportunity to invest in a new project. The new project requires additional investment of $40,000 and will generate $5,600 in additional operating income. Will the manager invest in the new project if the division is evaluated based on ROI?
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Fundamentals of Cost Accounting
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