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ashly138 ashly138
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6 years ago
Hargrave Products has three divisions which operate autonomously. Their results for the current year were as follows:

   East   West   International
Sales   $30,000,000   $40,000,000   $50,000,000
Cost of goods sold   15,000,000   25,000,000   37,000,000
Operating income   4,500,000   4,750,000   5,000,000
Investment base   30,000,000   30,500,000   31,000,000

The company's desired rate of return is 15 percent.

Required:
a.   Compute each division's ROI. Round to three decimal places.
b.   Compute each division's residual income.
c.   Rank each division by both ROI and residual income.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
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GarretAGarretA
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ashly138 Author
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6 years ago
This site is awesome
zbmallo3
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Good timing, thanks!
Zacellison
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2 hours ago
this is exactly what I needed
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