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The minimum rate of return set by company management is 15%. Required: a. What is the return on investment for each division? b. If Division
The minimum rate of return set by company management is 15%. Required: a. What is the return on investment for each division? b. If Division B was able to reduce its operating expenses by $70,000, what would be its new return on investment? c. What is the residual income for each division? d. If the divisions were each offered an opportunity to add an investment that would result in a 17% ROI, which division would be less likely to accept the new opportunity
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