50.1K

Verified Solution

Link Copied!

Brief Exercise 22-12

Presented below is information related to the Southern Division of Lumber, Inc.

Contribution margin $1,211,900

Controllable margin $895,114

Average operating assets $4,068,700

Minimum rate of return 18 %

Compute the Southern Divisions return on investment and residual income.

Return on investment

%

Residual income

$

Brief Exercise 22-12 Presented below is information related to the Southern Division of Lumber, Inc. Contribution margin Controllable margin Average operating assets Minimum rate of return $1,211,900 $895,114 $4,068,700 18% Compute the Southern Division's return on investment and residual income. Return on investment Residual income Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts: 0 of 5 used SAVE FOR LATER SUBMIT ANSWER Brief Exercise 22-12 Presented below is information related to the Southern Division of Lumber, Inc. Contribution margin Controllable margin Average operating assets Minimum rate of return $1,211,900 $895,114 $4,068,700 18% Compute the Southern Division's return on investment and residual income. Return on investment Residual income Click if you would like to Show Work for this question: Open Show Work By accessing this Question Assistance, you will learn while you earn points based on the Point Potential Policy set by your instructor Question Attempts: 0 of 5 used

Answer & Explanation Solved by verified expert

See Answer