Grayson & Sons, a local car dealership, has three separate divisions: car repair, new car sales, and used car sales. The company has decided to implement a new system for evaluating the performance of its three division managers and the bonuses they receive. The following information is available with respect to each division for the current year: In order to receive a bonus, a division manager must have an ROI greater than 50% and residual income in excess of $1,400,000. If management uses a minimum required rate of return of 18%, which division manager(s) would be eligible to receive a bonus?
A) Car repair only
B) New car only
C) Used car only
D) Car repair, new car, and used car

Question

Grayson & Sons, a local car dealership, has three separate divisions: car repair, new car sales, and used car sales. The company has decided to implement a new system for evaluating the performance of its three division managers and the bonuses they receive. The following information is available with respect to each division for the current year:  In order to receive a bonus, a division manager must have an ROI greater than 50% and residual income in excess of $1,400,000. If management uses a minimum required rate of return of 18%, which division manager(s) would be eligible to receive a bonus?
A) Car repair only 
B) New car only 
C) Used car only 
D) Car repair, new car, and used car

Quizplus · Accepted Answer

The Answer of Grayson & Sons, a local car dealership, has three separate divisions: car repair, new car sales, and used car sales. The company has decided to implement a new system for evaluating the performance of its three division managers and the bonuses they receive. The following information is available with respect to each division for the current year:  In order to receive a bonus, a division manager must have an ROI greater than 50% and residual income in excess of $1,400,000. If management uses a minimum required rate of return of 18%, which division manager(s) would be eligible to receive a bonus?
A) Car repair only 
B) New car only 
C) Used car only 
D) Car repair, new car, and used car

Grayson & Sons, a Local Car Dealership, Has Three Separate