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Author Question: Batman Abstract Company has three divisions that operate autonomously. Their results for 2015 are as ... (Read 105 times)

rl

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Batman Abstract Company has three divisions that operate autonomously. Their results for 2015 are as follows:

RiddlerJokerPenguin
Sales$5,000,000$7,000,000$10,000,000
Contribution margin1,440,0001,700,0003,500,000
Operating income1,000,0001,750,000 2,520,000
Investment base9,000,00010,000,00014,000,000
The company's desired rate of return is 20%. 

Required:
a.Compute each division's ROI.
b.Compute each division's residual income.
c.Rank each division by both ROI and residual income.
d.Which division had the best performance in 2015? Why? 


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Marked as best answer by rl on Mar 6, 2021

Ptupou85

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rl

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


smrtceo

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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