Question: Please answer the following questions by clicking on reply below this post. You must post your answers fully. You won't see other students' posts until
Please answer the following questions by clicking on reply below this post. You must post your answers fully. You won't see other students' posts until you make your own.
- In this module, we discussed three types of responsibility centers. Identify the three types and provide a unique example (one not in the slides/textbook) of each.
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Compute (a) return on investment and (b) residual income for each division. Assume a target income of 10% of average invested assets. For both performance measures, identify the division (investment center) with the best indicator.
| Investment Center | Net Income | Average Assets |
| Trucks | $50,100,000 | $250,400,000 |
| SUVs | 20,405,000 | 180,500,000 |
| Compact Cars | 9,500,000 | 150,000,000 |
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