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

   Riddler   Joker   Penguin
Sales   $5,000,000   $7,000,000   $10,000,000
Contribution margin   1,440,000   1,700,000   3,500,000
Operating income   1,000,000   1,750,000    2,520,000
Investment base   9,000,000   10,000,000   14,000,000

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?
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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9 years ago
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jerico Author
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#2
9 years ago
This solved my problem perfectly, thank you for your kind input.
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#3
9 years ago
Sweet, you're welcome.
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#4
3 years ago
thank you
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#5
3 years ago
thank you
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