Hannah Division of Tide Inc has the following data for 2012: Assets available for use is 2,000,000; Hannah Divisions’ ROI is 25%; Hannah Divisions residual income is 200,000 and ROI of Tide Inc as a whole is 20%. What is the target rate of return for Tide Corp?

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 18E: The following selected data pertain to the Argent Division for last year: Required: 1. How much is...
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Hannah Division of Tide Inc has the following data for 2012: Assets available for use is 2,000,000; Hannah Divisions’ ROI is 25%; Hannah Divisions residual income is 200,000 and ROI of Tide Inc as a whole is 20%. What is the target rate of return for Tide Corp?

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