2. Titanic Corporation has three investment centre as below: Centre Nike Pine Feira (RM) (RM) (RM)...

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2. Titanic Corporation has three investment centre as below: Centre Nike Pine Feira (RM) (RM) (RM) Sales Operating income Average operating assets 4,000,000 6,000,000 3,500,000 4,000,000 6,000,000 5,000,000 9,000,000 13,000,000 8,000,000 Required: (a) Compute Return on Investment (ROI) for each centre. (6 marks) (b) Based on 1(a) answer, give comment on the best performance center. () (1 marks) Calculate Residual Income (RI) for each centre if minimum return required is 20%. (6 marks) (d) List TWO (2) techniques to increase ROI. (2 marks) 2. Titanic Corporation has three investment centre as below: Centre Nike Pine Feira (RM) (RM) (RM) Sales Operating income Average operating assets 4,000,000 6,000,000 3,500,000 4,000,000 6,000,000 5,000,000 9,000,000 13,000,000 8,000,000 Required: (a) Compute Return on Investment (ROI) for each centre. (6 marks) (b) Based on 1(a) answer, give comment on the best performance center. () (1 marks) Calculate Residual Income (RI) for each centre if minimum return required is 20%. (6 marks) (d) List TWO (2) techniques to increase ROI. (2 marks)

Answer rating: 100% (QA)

a Return on Investment ROI is calculated as Operating Income divided by Average Operating Asset... View the full answer