Information for a company's Investment centers follows. Investment Center Mobile devices Customer support Income $309,400 223,600 Sales $ 3,739,000 1,789,000 Average Assets $ 1,700,000 1,300,000 Enter answers in the tabs below. Required 1 Required 2 Required 3 Assuming a target income of 10% of average assets, compute each center's residual income and determine which the higher residual income. Income Investment Center Mobile devices 5 309,400 S Customer support 223,500 Residual income Which center generated the higher residual income? Required 2 > Information for a company's Investment centers follows. Investment Center Mobile devices Customer support Income $ 309,400 223,600 Sales $3,739,000 1,789,000 Average Assets $1,700,000 1,300,000 Enter answers in the tabs below. 2 Required 3 Required 1 Required 2 Compute each center's return on investment and determine which is most efficient at using assets to make income, based on return on investment. Mobile devices Customer support Most efficient center Numerator: Return on Investment Denominator Return on Investment
Information for a company's Investment centers follows. Investment Center Mobile devices Customer support Income $309,400 223,600 Sales $ 3,739,000 1,789,000 Average Assets $ 1,700,000 1,300,000 Enter answers in the tabs below. Required 1 Required 2 Required 3 Assuming a target income of 10% of average assets, compute each center's residual income and determine which the higher residual income. Income Investment Center Mobile devices 5 309,400 S Customer support 223,500 Residual income Which center generated the higher residual income? Required 2 > Information for a company's Investment centers follows. Investment Center Mobile devices Customer support Income $ 309,400 223,600 Sales $3,739,000 1,789,000 Average Assets $1,700,000 1,300,000 Enter answers in the tabs below. 2 Required 3 Required 1 Required 2 Compute each center's return on investment and determine which is most efficient at using assets to make income, based on return on investment. Mobile devices Customer support Most efficient center Numerator: Return on Investment Denominator Return on Investment
Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 14.11E
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