The average operating assets and minimum required rate of return of each segment are as follows:...
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The average operating assets and minimum required rate of return of each segment are as follows: Average Operating Assets (in thousands) Required rate of return Segment ● ● PAstry P2,500,000 15% Compute, analyze, and discuss with top management: Fruit Juices and Dessers P1,270,000 12% Fast Food P890,000 3% How much is the ROI and residual income of each segment? How would you compare each segment's performance based on ROI and residual income? What actions would you recommend to improve or maintain each segment's ROI and residual income? The average operating assets and minimum required rate of return of each segment are as follows: Average Operating Assets (in thousands) Required rate of return Segment ● ● PAstry P2,500,000 15% Compute, analyze, and discuss with top management: Fruit Juices and Dessers P1,270,000 12% Fast Food P890,000 3% How much is the ROI and residual income of each segment? How would you compare each segment's performance based on ROI and residual income? What actions would you recommend to improve or maintain each segment's ROI and residual income?
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ROI and Residual Income of Each Segment ROI Segment Average Operating Assets Required Rate of Return ROI Pastry P2500000 15 17 Fruit Juices and Desserts P1270000 12 20 Fast Food P890000 3 18 Residual ... View the full answer
Related Book For
Managerial Accounting for Managers
ISBN: 978-1259578540
4th edition
Authors: Eric Noreen, Peter Brewer, Ray Garrison
Posted Date:
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