The following information is available about the Appliance Division of Rainier Company.
Rainier requires a return of 9% from all divisions.
$$\begin{array} { l c }
\text { Appliance Division Earnings from Operations } & \$ 18,462,000 \
\text { Appliance Division Sales } & \$ 112,600,000 \
\text { Appliance Division Identifiable Assets } & \$ 173,700,000
\end{array}$$
Required:
a. Compute the ROI for the Appliance Division.
b. Compute the residual income for the Appliance Division.

Question

The following information is available about the Appliance Division of Rainier Company.
Rainier requires a return of 9% from all divisions.
 $$\begin{array} { l c } 
\text { Appliance Division Earnings from Operations } & \$ 18,462,000 \
\text { Appliance Division Sales } & \$ 112,600,000 \
\text { Appliance Division Identifiable Assets } & \$ 173,700,000
\end{array}$$ 
Required:
a. Compute the ROI for the Appliance Division.
b. Compute the residual income for the Appliance Division.

Quizplus · Accepted Answer

The Answer of The following information is available about the Appliance Division of Rainier Company.
Rainier requires a return of 9% from all divisions.
 $$\begin{array} { l c } 
\text { Appliance Division Earnings from Operations } & \$ 18,462,000 \
\text { Appliance Division Sales } & \$ 112,600,000 \
\text { Appliance Division Identifiable Assets } & \$ 173,700,000
\end{array}$$ 
Required:
a. Compute the ROI for the Appliance Division.
b. Compute the residual income for the Appliance Division.

The Following Information Is Available About the Appliance Division of Rainier