Question
Three divisions of Jameson Co. report the following sales and operating data: Fitness Training Spa Services Athletic Wear Sales $ 600,000 $ 750,000 $ 400,000
| Three divisions of Jameson Co. report the following sales and operating data: |
| Fitness Training | Spa Services | Athletic Wear | |||||||
| Sales | $ | 600,000 | $ | 750,000 | $ | 400,000 | |||
| Average operating assets | $ | 200,000 | $ | 250,000 | $ | 100,000 | |||
| Operating income | $ | 30,000 | $ | 37,500 | $ | 24,000 | |||
| Minimum required rate of return | 10 | % | 12 | % | 10 | % | |||
|
| |||||||||
| Required: | |
| a. | Compute the ROI for the Athletic Wear division (state as a whole number i.e. 17 for 17%, no decimals, no % sign) |
Answer:
| b. | Compute the Residual Income (RI) for the Spa Services division (to the nearest dollar) |
Answer:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Effective Use Of Teams For IT Audits
Authors: Martin Krist
1st Edition
0849398282, 978-0849398285
