Question: Question:Hello. I need some help and direction understanding how to complete the following..... RDI and Residual Income Misteree Books manufactures both paperback and hardback books.

Question:Hello. I need some help and direction understanding how to complete the following.....

RDI and Residual Income Misteree Books manufactures both paperback and hardback books. The information for two of the divisions follows: Printing Division Binding Division Average operating assets 5 500,000 5 550,000 Contribution margin 130,000 350,000 5 5 Operating income 5 110,000 5 180,000 5 5 Balm 350,000 1,125,000 Weighted-ave rage cost of capital 25% 1595 Misteree Books is subject to a 3595 tax rate and has a target ROI of 20%. Complete the following: 1. For each division, calculate the following: a. Return on sales b. Doerating investment turnover c. RDI cl. Residual income 1. Discuss the advantage and disadvantage of using residual income as opposed to R0| as an investment center performance measure. [Be thorough in vour discussion.)

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