Return on Investment and Residual IncomeJohnson Company has two sources of funds: long$-$term debt and equity capital. Johnson Company has profit centers in the following locations with the following net incomes and total assets:Net IncomeAssetsLas Vegas$$1,140,000$$$4,000,000$Dallas$1,380,0008,000,000$Tampa$2,220,00012,000,000$

a$.$ Calculate ROI for each profit center and rank them from highest to lowest based on ROI.Round ROI to the nearest whole percentage.ROIRankLas VegasDallasTampab.

b. Calculate residual income for each profit center based on a desired ROI of $5\%$ and rank them from highest to lowest based on residual income.RIRankLas VegasDallasTampa 

Answer rating: 100% (QA)

To calculate ROI Return on Investment for each profit center we use the formula ROI Net Income Total ... View the full answer