Question: are there. 3 question correct? 1. compute ROI for each division. Food Division Flower Division Vitamin Division Division net income $ 275,000 $ 350,000 Division
1. compute ROI for each division. Food Division Flower Division Vitamin Division Division net income $ 275,000 $ 350,000 Division assets $ 1,400,000 $ 425,000 $3,200,000 11.3.3 or 13.28 $ 2,500,000 ROI 19.6 or 19.64 0.14 2. compute residual income for each division. Tire and Auto Clothing and books Retail products Division net income $ 500,000 $ 4,600,000 $ 820,000 $ 4,200,000 Division net assets $ 2,600,000 $ 10,600,000 Required return 10% 10% 10% Residual income 400,000 240,000 3,540,000 3. allocate $ 120,000 of corporate advertising to the following divisions based on sales revenues. sales revenues % of total allocation of $ 120,000 men's clothing women's clothing children's clothing $ 450,000 1,550,000 400,000 18.7 64.6 16.7 22,440 77,520 20,040 total $ 2,400,000 100% $ 120,000
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