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Author Question: Craylon Corp has three divisions, which operate autonomously. Their results for 2015 were as ... (Read 67 times)

Kthamas

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Craylon Corp has three divisions, which operate autonomously. Their results for 2015 were as follows: 

EastWestInternational
Sales$30,000,000$40,000,000$50,000,000
Cost of goods sold15,000,00025,000,00037,000,000
Operating income4,500,0005,000,0005,500,000
Investment base30,000,00032,000,00034,000,000
The company's desired rate of return is 15%. 

Required:
a.Compute each division's ROI. Round to three decimal places.
b.Compute each division's residual income.


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Marked as best answer by Kthamas on Mar 6, 2021

jgranad15

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Kthamas

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Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review


T4T

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Reply 3 on: Yesterday
Excellent

 

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