Grayson & Sons,a local car dealership,has three separate divisions: car repair,new car sales,and used car sales.The company has decided to implement a new system for evaluating the performance of its three division managers and the bonuses they receive.The following information is available with respect to each division for the current year:
In order to receive a bonus,a division manager must have an ROI greater than 50 per cent and residual income in excess of $1 400 000.If management uses a minimum required rate of return of 18 per cent,which division manager(s) would be eligible to receive a bonus?
A) Car repair only
B) New car only
C) Used car only
D) Car repair,new car,and used car
Correct Answer:
Verified
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