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Use the Following Information to Answer Question Hays Company Has Set a Target Return on Investment (ROI)

Question 8

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Use the following information to answer Question. Renfro Company has two divisions, the Restaurants Division and the Commissary Division. The following information was gathered for the two divisions in 2012:  Restaurants  Division  Commissary  Division  Operating Income $4,000,000$1,500,000 Operating Assets $30,000,000$10,500,000\begin{array} { | l | l | l | } \hline & \begin{array} { l } \text { Restaurants } \\\text { Division }\end{array} & \begin{array} { l } \text { Commissary } \\\text { Division }\end{array} \\\hline \text { Operating Income } & \$ 4,000,000 & \$ 1,500,000 \\\hline \text { Operating Assets } & \$ 30,000,000 & \$ 10,500,000 \\\hline\end{array}
Hays Company has set a target return on investment (ROI) of 12% for both divisions.
Calculate ROI for the Restaurants Division and the Commissary Division. Based on ROI, which division appears to have performed better?

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ROI for Restaurants = $4,000,0...

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