Genoa Equipment Company has three separate divisions: Tractors,Trailers,and Trucks.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 45% and residual income was in excess of $6,000,000.If management uses a cost of capital rate of 22%,which division manager(s)would be eligible for a bonus?
A)The Trucks Division.
B)The Trailers Division.
C)The Tractors Division.
D)All of the divisions.
E)None of the answer choices is correct.

Question

Genoa Equipment Company has three separate divisions: Tractors,Trailers,and Trucks.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 45% and residual income was in excess of $6,000,000.If management uses a cost of capital rate of 22%,which division manager(s)would be eligible for a bonus?
A)The Trucks Division. 
B)The Trailers Division. 
C)The Tractors Division. 
D)All of the divisions. 
E)None of the answer choices is correct.

Quizplus · Accepted Answer

The Answer of Genoa Equipment Company has three separate divisions: Tractors,Trailers,and Trucks.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 45% and residual income was in excess of $6,000,000.If management uses a cost of capital rate of 22%,which division manager(s)would be eligible for a bonus?
A)The Trucks Division. 
B)The Trailers Division. 
C)The Tractors Division. 
D)All of the divisions. 
E)None of the answer choices is correct.

Genoa Equipment Company Has Three Separate Divisions: Tractors,Trailers,and Trucks