Attley Inc.has three separate divisions: Division A,Division B,and Division C.Information about the three divisions follows:

The company has recently implemented a new performance evaluation system.Based on this new system,a division manager would only receive a bonus if the ROI of the division was greater than 25% and residual income was in excess of $20,000.If management uses a cost of capital rate of 18%,which division manager(s)would be eligible for a bonus?
A)Division A and Division B.
B)Division B and Division C.
C)Division A only.
D)Division B only.
E)None of the answer choices is correct.

Question

Attley Inc.has three separate divisions: Division A,Division B,and Division C.Information about the three divisions follows:

The company has recently implemented a new performance evaluation system.Based on this new system,a division manager would only receive a bonus if the ROI of the division was greater than 25% and residual income was in excess of $20,000.If management uses a cost of capital rate of 18%,which division manager(s)would be eligible for a bonus?
A)Division A and Division B. 
B)Division B and Division C. 
C)Division A only. 
D)Division B only. 
E)None of the answer choices is correct.

Quizplus · Accepted Answer

The Answer of Attley Inc.has three separate divisions: Division A,Division B,and Division C.Information about the three divisions follows:

The company has recently implemented a new performance evaluation system.Based on this new system,a division manager would only receive a bonus if the ROI of the division was greater than 25% and residual income was in excess of $20,000.If management uses a cost of capital rate of 18%,which division manager(s)would be eligible for a bonus?
A)Division A and Division B. 
B)Division B and Division C. 
C)Division A only. 
D)Division B only. 
E)None of the answer choices is correct.