CH18-Q2)

OPTIONS FOR DROP-DOWN BOXES ARE DIVISION I OR DIVISION T

Spring Bulbs operates two divisions, which are treated as investment centres. Data for each division for the current year are as follows (in '000s): Division T Division Net income $89,600 $211,800 Total assets $244,000 $860,000 The company's required rate of return is 13%. The president wishes to evaluate the performance of these divisions and is not sure whether to use ROI or Rl as the performance measure. Which division performed better based on the ROI and Rl performance measures? (Round ROI to 1 decimal place, e.g. 15.2% and RI to 0 decimal places, e.g. 5,275.) Division T Division 1 ROI % % RI (in '000s) $ $ Performance measures Based on ROI Based on RI