1 ferris wares is a division of a major corporation, Ask an Expert

Accounting

1. Ferris Wares is a division of a major corporation. The following data are for the latest year of operations:

Sales $15,000,000
Net operating income $1,500,000
Average operating assets $5,000,000
Minimum required rate of return 15%

Required:

a. What is the division's residual income?
b. What is the division's return on investment (ROI)?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9959539

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