Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. 2. question 3 - performance evaluation - version 8

2. Question 3 - Performance Evaluation - Version 8 (10 marles) Dingo Division's operating results...

80.2K

Verified Solution

Question

Accounting

image
image
2. Question 3 - Performance Evaluation - Version 8 (10 marles) Dingo Division's operating results includes controllable margin of $100,000, sales totaling $1,200,000, and investment 5 of average operating assets of $500,000. Dingo is considering a project with sales of $120,000, controllable margin of $30,000, and an imvestment of average operating assets of $200,000. 6 Dingo's minimum required rate of return is 12%. Required: 1. If Dingo Division is evaluated based on ROI, would the division accept this project? Calculate the current ROI and the ROI with the new project and comment. (5 marks) 2. If Dingo Division is evaluated based on residual income, would the division accept this project? Calculate the current RI and the RI with the new project and comment

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students