An art distribution company has three divisions which operate autonomously. Their results for 2010 were as follows:
The company's desired rate of return is 20 percent.
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 2011? Why?

Question

An art distribution company has three divisions which operate autonomously. Their results for 2010 were as follows:
  The company's desired rate of return is 20 percent.
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 2011? Why?

Quizplus · Accepted Answer

The Answer of An art distribution company has three divisions which operate autonomously. Their results for 2010 were as follows:
  The company's desired rate of return is 20 percent.
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 2011? Why?

An Art Distribution Company Has Three Divisions Which Operate Autonomously