Longview Baskets has in its inventory 2,000 damaged baskets that cost $20,000. The baskets can be sold

Question:

Longview Baskets has in its inventory 2,000 damaged baskets that cost $20,000. The baskets can be sold in their present condition for a total of $12,000, or repaired at a cost of $7,000 and sold for a total of $25,000. What is the of selling the baskets in their present condition? Would we Sell As Is or Process Further?
Assume the Air Conditioning division of the General Appliance had the following results last year (in thousands). Management's target rate of return is 12% and the weighted average is 10%. Its effective tax rate is 35%
Sales..................................................$10,000,000
Operating income......................................2,400,000
Total assets.............................................2,500,000
Current liabilities.........................................920,000
a) What is the division's Return on Investment (ROI)?
b) What is the division's Residual Income (RI)?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may... Cost Of Capital
Cost of capital refers to the opportunity cost of making a specific investment . Cost of capital (COC) is the rate of return that a firm must earn on its project investments to maintain its market value and attract funds. COC is the required rate of... Opportunity Cost
Opportunity cost is the profit lost when one alternative is selected over another. The Opportunity Cost refers to the expected returns from the second best alternative use of resources that are foregone due to the scarcity of resources such as land,...