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Vaughan Company has 3 divisions with the following information: Division A Division B Division C Sales $750,000 $700,000 $360,000 Net Operating Income $30,000 $35,000 $36,000

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Vaughan Company has 3 divisions with the following information: Division A Division B Division C Sales $750,000 $700,000 $360,000 Net Operating Income $30,000 $35,000 $36,000 Average Operating Assets $200,000 $500,000 $300,000 Minimum Required Rate of Return 8% 15% 9% Assume that each division was presented with an investment opportunity that would yield a rate of return of 11%. If performance is being measured by residual income (Select) because (Select) [ Select] 11% is equal to or higher than their minimum required rate of return 11% is greater than their current ROI 11% is less than their current ROI

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