A company has the following information: Department A Department B Sales revenue $ 1,020,000 $...
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Accounting
A company has the following information: Department A Department B Sales revenue $ 1,020,000 $ 1,530,000 Expenses 765,000 1,147,500 Net operating income $ 255,000 $ 382,500 Average invested assets $ 2,550,000 $ 2,250,000 The hurdle rate of 8%. Required:
Compute the return on investment (ROI) and residual income for each department.
Note: Enter your ROI answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%.)
Department A
Depatment B
ROI
%
%
Residual Income (Loss)
Req 1B
Determine which manager seems to be performing better.
Department Aradio button unchecked1 of 2
Department Bradio button unchecked2 of 2
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