Question: Instead of basing divisional managers bonuses on ROA, Performance Technologies switches to residual income as the methodology used to measure divisional performance and reward divisional
Instead of basing divisional managers bonuses on ROA, Performance Technologies switches to residual income as the methodology used to measure divisional performance and reward divisional managers, including Zang. Assuming that Zang is rewarded based on improving the residual income of the Wilson Division, what decisions will she make regarding accepting or rejecting projects A and B Support your answer with detailed computations.
Discuss why your answers differ or are the same in parts a and b
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