Determine the April 2014 residual income for an investment center with the following information:

Operating income for the month ended April 30, 2014. . . . . . . . . . . . . . . . . . . $2,300,000

Assets at March 31, 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $10,200,000

Assets at April 30, 2014. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $13,150,000

Desired ROI. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18%

Actual ROI . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20%

Answer rating: 100% (QA)

An important drawback of return of investment ROI is that it igno... View the full answer