Question: 1 . Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2.

1. Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income? 2. Assume a target income of 12% of average assets. Compute residual income for each center. Which center generated the most residual income?


InvestmentCenterElectronicsSportinggoodsSales$32,600,00015,744,000Income$2,771,0001,968,000AverageAssets$16,300,00012,300,000 Assume a target income of 12% of average assets. Compute residual income for each center. Which center generated the most residual income? Compute return on investment for each center. Using return on investment, which center is most efficient at using assets to generate income
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