Question: Please answer ASAP Big Mountain Bikes (BMB) has two divisions: North and South. BMB has a cost of capital of 15 percent and the following
Big Mountain Bikes (BMB) has two divisions: North and South. BMB has a cost of capital of 15 percent and the following selected financial information for its Year 1 activities. 6. What are the ROI's for each division? A. North: 24%; South: 35% B. North: 35%; South: 24% C. North: 50%; South: 36% D. North: 36%; South: 50% 7. What are the residual incomes for each division? A. North: 790 ; South: 450 B. North: 450 ; South: 790 C. North: 400 ; South: 790 D. North: 790 ; South: 400 8. EZHotel is a S\&P 500 technology company that acts as an online platform for vacation rentals, earning 12% service revenues on each vacation rental. Jane Jones is the U.S. Division Manager and has full authority to make all decisions for the U.S. division. The CEO is currently debating how to effectively evaluates Jane Jones' productivity and efficiency. Which of the following is an appropriate management control system for evaluating and compensating Jane Jones? A. Jane Jones should be evaluated based on sales of the U.S. region; Jane Jones should be compensated based on a percentage of vacation rentals for the U.S. region. B. Jane Jones should be evaluated based on sales of the U.S. region; Jane Jones should be compensated based on a percentage of vacation rentals for the North American region. C. Jane Jones should be evaluated based on sales of the North American region; Jane Jones should be compensated based on a percentage of vacation rentals for the U.S. region. D. Jane Jones should be evaluated based on the number of vacation rentals of the North American region; Jane Jones should be compensated based on a percentage of vacation rentals for the North American region
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
