"> (solution)- ME11 Problem: ROI & Residual Income ? Divisional Income Paper Detail – Transwriters

### (solution)- ME11 Problem: ROI & Residual Income ? Divisional Income

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ME11 Problem: ROI & Residual Income ? Divisional Income

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The following two divisions, Division I and II, annual results are as follows:Division I Division IIAssets employed \$1,000,000\$3,000,000?Net income \$180,000\$420,000?Required:1. Calculate ROI for each division.2. Calculate residual income assuming the minimum required rate of return is:a) 12%?b) 15%c) 17%

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This paper was answered on 19-Jul-2017

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