# BackCountry Hiking Company produces and sells specialty camping equipment nationally and internationally. Following is information about two divisions after exchange rate corrections: REQUIRED A. Calculate each division's ROI. B. Calculate each division's residual income. C. Calculate each division's EVA. D. Evaluate the two divisions. Write a memo to the CEO explaining the performance of the two divisions. E. Suppose the

BackCountry Hiking Company produces and sells specialty camping equipment nationally and internationally. Following is information about two divisions after exchange rate corrections:

REQUIRED

A. Calculate each division's ROI.

B. Calculate each division's residual income.

C. Calculate each division's EVA.

D. Evaluate the two divisions. Write a memo to the CEO explaining the performance of the two divisions.

E. Suppose the German division had an opportunity to invest $350,000 in a project that would generate sales of $500,000 and return on sales of 10%, or $50,000. Would the division manager be likely to undertake this project if he or she is evaluated using ROI? Explain.

The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...

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