Question: Problem 6. (15 Points) Zander Corporation has three reportable segments based on product lines- Product X, Product Y, and Product Z. Selected information from 2021
Problem 6. (15 Points) Zander Corporation has three reportable segments based on product lines- Product X, Product Y, and Product Z. Selected information from 2021 financial statements follow: Required: a. Find the ROI, Sales Margin, and Capital Tumover for Products X, Y, and Z b. Find the residual income for all divisions if Zander's minimum required rate of return 1516% c. Suppose Zander bases its bonuses of divisional managers on ROI and Zander's minumum required rate of return is 16%. Zander wants the divisional managers to report whether they would be willing to invest an additional $500,000 in their divisions. The divisional managers of X,Y, and Z expect $95,000,$85,000, and $125,000 income, respectively, to be generated from this investment. i) Which divisional manager will be willing to accept the investment proposal? ii) From Zander's perspective, which divisional manager is the most suitable to accept the investment proposal? ii) How can Zander ensure that the best division to undertake the investment does indeed show a willingness to accept the investment proposal
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