Determine the residual income for each division.

The income from operations and the amoun Show more Hint(s) Check My Work eBook Rate of Return on Investment The income from operations and the amount of invested assets in each division of Devon Industries are as follows: Income from Operations Income from Operations Invested Assets Invested Assets Sporting Goods Division $133000 700000 Health Care Division 123200 560000 Commercial Division 103600 740000 a. Compute the rate of return on investment for each division. (Round to the nearest whole number.) Division Percent Sporting Goods Division % Health Care Division % Commercial Division % b. Which division is the most profitable per dollar invested? SelectCommercial DivisionHealth Care DivisionSporting Goods DivisionItem 4 Residual Income The income from operations and the amount of invested assets in each division of Devon Industries are as follows: Income from Operations Income from Operations Invested Assets Invested Assets Sporting Goods Division $168000 800000 Health Care Division 196800 820000 Commercial Division 208000 800000 Assume that management has established a 12% minimum acceptable rate of return for invested assets. a. Determine the residual income for each division. Sporting Goods Division Sporting Goods Division Sporting Goods Division Health Care Division Health Care Division Health Care Division Commercial Division Commercial Division Commercial Division Income from operations $168000 $168000 $168000 $196800 $196800 $196800 $208000 $208000 $208000 Minimum amount of income from operations Residual income $ $ $ b. Which division has the most residual income? SelectCommercial DivisionHealth Care DivisionSporting Goods DivisionItem 7 Show less

Get 20% discount on your first order with us. Place an order and use coupon: GET20