Vernon Technologies, Inc. has three divisions, Vernon has a desired rate of return of 110 percent. The operating assets and income for each division are as follows: Divisions Printer Copier Fax Total Operating Assets 5 710,000 980,000 530,000 $2,220,000 Operating Income $112,890 100,940 69,960 $283,790 Vernon headquarters has $137,000 of additional cash to invest in one of its divisions. The division managers have identified investment opportunities that are expected to yield the following Rols: Expected ROIS for Divisions Additional Investments Printer 12.5% Copier 11.5% FA 10.5% Required 0-1. Calculate the ROI for each division .-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $137,000 of Investment funds? c. Based on ROI, which division manager would be least likely to accept the $137.000 of investment funds? Required 6-1. Calculate the ROI for each division. a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $137.000 of Investment funds? c. Based on ROI, which division manager would be least likely to accept the $137000 of investment funds? d. Which division offers the best investment opportunity for Vernon? g. Calculate the residual income: (1) At the corporate (headquarters) level before the additional investment (2) At the division level before the additional investment. (3) At the investment level. (4) At the division level after the additional investment. Complete this question by entering your answers in the tabs below. Req A1 Reg A2 to D Req G1 Req G2 to G4 Calculate the ROI for each division. (Round your answers to 1 decimal place. (.e., 0.234 should be entered as 23.4).) Complete this question by entering your answers in the tabs below. Req A1 Reg A2 to D Req G1 Req G2 to G4 Calculate the ROI for each division. (Round your answers to 1 decimal place. (.e., 0.234 should be entered as 23.4). ROI % Printer Division Copier Division Fax Division de de Rest1 Req A2 to D > (9) At the division level after the additional investment. Complete this question by entering your answers in the tabs below. Req A1 Req A2 to D Req G1 Req G2 to G4 a-2. Which division manager is currently producing the highest ROI? b. Based on ROI, which division manager would be most eager to accept the $137,000 of Investment funds? c. Based on ROI, which division manager would be least likely to accept the $137,000 of investment funds d. Which division offers the best investment opportunity for Vernon Show less a 2 Which division manager is currently producing the highest ROI? Based on ROI, which division manager would be most eager to b accept the $137.000 of investment funds? Based on ROI, which division manager would be least likely to accept IC the $137 000 of investment funds? d Which division offers the best investment opportunity for Vernon? g. Calculate the residual income: (1) At the corporate (headquarters) level before the additional investment. (2) At the division level before the additional Investment. (3) At the investment level. (4) At the division level after the additional investment. Complete this question by entering your answers in the tabs below. Req A1 Req A2 to D Req G1 Req G2 to G4 Calculate the residual income at the corporate (headquarters) level before the additional investment. Residual income Complete this question by entering your answers in the tabs below. Req A1 Reg A2 to D Reg G1 Req G2 to G4 Calculate the residual income: (Loss amounts should be indicated by a minus sign.) (2) At the division level before the additional investment. (3) At the investment level. (4) At the division level after the additional Investment. Show less Residual income (los) (2) Printer division Copier division Fax division (3) Printer division Copier division Fax division (4) Printer division
