Complete this question by entering your answers in the tabs below.Reg A1Req A2 to DReq G1Reg G2 to G4Calculate the ROI for each division. (Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).)ROIPrinter Division%Copier Division%Fax Division%< Req A1Req A2 to D > Altoona Technologies, Inc. (ATI) has three divisions. ATI has a desired rate of return of 12.5 percent. The operating assets and incomefor each division are as follows:OperatingOperatingDivisionsAssetsIncome$ 96,00090,000Printer$540,000810,000360,000СopierFax54,000Total$1,710,000$240,000ATI headquarters has $120,000 of additional cash to invest in one of its divisions. The division managers have identified investmentopportunities that are expected to yield the following ROls:Expected ROIS forDivisionsAdditional InvestmentsPrinter14.0%Сopier13.0%Fax12.0%Requireda-1. Calculate the ROI for each division.a-2. Which division manager is currently producing the highest ROI?b. Based on ROI, which division manager would be most eager to accept the $120,000 of investment funds?c. Based on ROI, which division manager would be least likely to accept the $120,000 of investment funds?d. Which division offers the best investment opportunity for ATI?g. Calculate the residual income:(1) At the corporate (headquarters) level before the additional investment.(2) At the division level before the additional investment.(3) At the investment level.(4) At the division level after the additional investment.

The question is related to Ratio Analysis. The Return on Investment is calculated with the help of…

Complete this question by entering your answers in the tabs below. Req A1 Req A2 to D Req G1 Req G2 to G4 Calculate the ROI for each division. (Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) ROI Printer Division % Copier Division Fax Division < Req A1 Req A2 to D >

Complete this question by entering your answers in the tabs below. Req A1 Req A2 to D Req G1 Req G2 to G4 Calculate the ROI for each division. (Round your answers to 1 decimal place. (i.e., 0.234 should be entered as 23.4).) ROI Printer Division % Copier Division Fax Division < Req A1 Req A2 to D >

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 4PB: Banyan Industries has two divisions, a tax rate of 30%, and a minimum rate of return of 20%....

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Altoona Technologies, Inc. (ATI) has three divisions. ATI has a desired rate of return of 12.5 percent. The operating assets and income
for each division are as follows:
Operating
Operating
Divisions
Assets
Income
$ 96,000
90,000
Printer
$
540,000
810,000
360,000
Сopier
Fax
54,000
Total
$1,710,000
$240,000
ATI headquarters has $120,000 of additional cash to invest in one of its divisions. The division managers have identified investment
opportunities that are expected to yield the following ROls:
Expected ROIS for
Divisions
Additional Investments
Printer
14.0%
Сopier
13.0%
Fax
12.0%
Required
a-1. Calculate the ROI for each division.
a-2. Which division manager is currently producing the highest ROI?
b. Based on ROI, which division manager would be most eager to accept the $120,000 of investment funds?
c. Based on ROI, which division manager would be least likely to accept the $120,000 of investment funds?
d. Which division offers the best investment opportunity for ATI?
g. Calculate the residual income:
(1) At the corporate (headquarters) level before the additional investment.
(2) At the division level before the additional investment.
(3) At the investment level.
(4) At the division level after the additional investment.

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