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Author Question: Care Inc., has two divisions that operate independently of one another. The financial data for the ... (Read 26 times)

Arii_bell

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Care Inc., has two divisions that operate independently of one another. The financial data for the year 2015 reported the following results:

NorthSouth
Sales$6,000,000$5,000,000
Operating income1,700,0001,300,000
Taxable income1,700,000775,000
Investment15,000,00011,000,000

The company's desired rate of return is 10%. Income is defined as operating income.
Which division has the best return on investment and which division has the best residual income figure, respectively?
◦ North, North
◦ South, South
◦ North, South
◦ South, North


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Marked as best answer by Arii_bell on Mar 6, 2021

mfedorka

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Arii_bell

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Reply 2 on: Mar 6, 2021
:D TYSM


scottmt

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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