The following information is available about the Charger Division of Weston Company.Weston requires a return of 8% from all divisions. $$\begin{array} { | l | l | }
\hline \text { Charger Division Earnings from operations } & \$ 12,854,000 \
\hline \text { Charger Division Sales } & \$ 92,500,000 \
\hline \text { Charger Division Identitiable Assets } & \$ 156,000,000 \
\hline
\end{array}$$Required:
(use four decimal places in you calculation)
a.Compute the ROI for the Charger Division.b.Compute the residual income for the Charger Division.

Question

The following information is available about the Charger Division of Weston Company.Weston requires a return of 8% from all divisions. $$\begin{array} { | l | l | } 
\hline \text { Charger Division Earnings from operations } & \$ 12,854,000 \
\hline \text { Charger Division Sales } & \$ 92,500,000 \
\hline \text { Charger Division Identitiable Assets } & \$ 156,000,000 \
\hline
\end{array}$$Required:
(use four decimal places in you calculation)
a.Compute the ROI for the Charger Division.b.Compute the residual income for the Charger Division.

Quizplus · Accepted Answer

The Answer of The following information is available about the Charger Division of Weston Company.Weston requires a return of 8% from all divisions. $$\begin{array} { | l | l | } 
\hline \text { Charger Division Earnings from operations } & \$ 12,854,000 \
\hline \text { Charger Division Sales } & \$ 92,500,000 \
\hline \text { Charger Division Identitiable Assets } & \$ 156,000,000 \
\hline
\end{array}$$Required:
(use four decimal places in you calculation)
a.Compute the ROI for the Charger Division.b.Compute the residual income for the Charger Division.

The Following Information Is Available About the Charger Division of Weston