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1. Lets assume that ROI for Wisconsin, Illinois and Minnesota are 30%, 13%, and 32%. Based on ROI, which location is the best managed?
1. Minnesota
2. Illinois
3. None of the locations
4. Wisconsin
2. The residual income for each location, assuming the company desires, a minimum rate of return of 12% from each division of Wisconsin, Illinois in Minnesota are:
1. 84%, 19.5% and 52% respectively
2. $40,000, -$22,000, and $32,000 respectively
3. $840,000, $195,000 and $520,000
4. $840, $195, $520
3. Lets assume that the residual income for each division of Wisconsin, Illinois and Minnesota are $240,000 $120,000 and $60,000 based on residual income which location is the best managed:
1. Wisconsin
2. Minnesota
3. Illinois
4. None of the location should be chosen because residual income should not be used to compare locations of different sizes
4. Lets assume that ROI for Wisconsin Illinois and Minnesota are 30% 13% and 32% Mike would like to expand on one of the current locations and have it also produce and sell golf gears. Mike believed that the golf expansion would generate a return of 14%. He wants to propose is expansion to one of the three managers. If the managers of the three locations are evaluated based on ROI, what would be their most likely response to Mikes proposal?
1. Wisconsin (reject) Illinois (reject) Minnesota (reject)
2. Wisconsin (reject) Illinois (accept) Minnesota (reject)
3. Wisconsin (accept) Illinois (reject) Minnesota (accept)
4. Wisconsin (accept) Illinois (accept) Minnesota (accept)

Spidey Inc., which manufactures fishing rods, operates three locations in Wisconsin, Illinois, and Minnesota. The company desires a minimum rate of return of 12%. Spidey's owner, Mike Oleray, is currently evaluating the performance of the three factories and their managers. He has assembled the following information pertaining to the 2017 fiscal year

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