Batman Abstract Company has three divisions that operate autonomously. Their results for 20X5 are as follows:
The company's desired rate of return is 20%.
Required:
a. Compute each division's ROI.
b. Compute each division's residual income.
c. Rank each division by both ROI and residual income.
d. Which division had the best performance in 20X5? Why?

Question

Batman Abstract Company has three divisions that operate autonomously. Their results for 20X5 are as follows:
  The company's desired rate of return is 20%.
Required:
a. Compute each division's ROI.
b. Compute each division's residual income.
c. Rank each division by both ROI and residual income.
d. Which division had the best performance in 20X5? Why?

Quizplus · Accepted Answer

The Answer of Batman Abstract Company has three divisions that operate autonomously. Their results for 20X5 are as follows:
  The company's desired rate of return is 20%.
Required:
a. Compute each division's ROI.
b. Compute each division's residual income.
c. Rank each division by both ROI and residual income.
d. Which division had the best performance in 20X5? Why?

Batman Abstract Company Has Three Divisions That Operate Autonomously