The following table contains actual segment data for two of PepsiCo’s geographic divisions:

(1) Latin America and (2) Europe.

Requirements:

1. Compute each division’s ROI.
2. Compute each division’s sales margin.
3. Compute each division’s capital turnover.
4. Comment on the results of the preceding calculations.
5. Compute each division’s residual income, assuming upper management desires a 25%
minimum rate of return.

Transcribed Image Text:

2020 Division Data Operating Assets. (All figures are in millions of dollars) Income Sales Revenue Latin America $1,033 $6,977 $6,942 Europe.......... $1,353 $17,917 $11,922