Company BCD has two departments where Net Income, Assets and Return on Investment (ROI) is tracked. 

Compute ROI.

                  Net Income           Average Assets            ROI

Dept A        $350,000                 $900,000               ____________

Dept B        $100,000                  $550,000              ____________

The company is implementing a target income of 10% of average assets. 

Compute the target income and residual income (loss) for each department.

                      Net Income           Average Assets                Target Income           Residual Income (Loss)

Dept. A           $350,000                     $900,000                      ____________                       ____________

Dept. B          $100,000                      $550,000                       ____________                      ____________

Answer rating: 100% (QA)

Computing ROI Department A ROI Net Income Average Assets x 1... View the full answer