A company is evaluating performance of its four divisions. The divisions are all investment centers. The following
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Question:
Division
Profit
ROI
Residual Income
Net operating assets
A
$720,000
12%
$100,000
$6,000,000
B
$200,000
20%
$70,000
$1,000,000
C
$630,000
9%
$400,000
$7,000,000
D
$25,000
5%
$19,000
$500,000
Which division performed the best?
A. Division D
B. Division A
C. Division C
D. Division B
Related Book For
Managing Controlling and Improving Quality
ISBN: 978-0471697916
1st edition
Authors: Douglas C. Montgomery, Cheryl L. Jennings, Michele E. Pfund
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