Selected data from York Company's accounting records reveal the following: Sales Average investment Operating income Minimum...
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Selected data from York Company's accounting records reveal the following: Sales Average investment Operating income Minimum rate of return. $ 700,000 $ 350,000 $ 50,000 12% Required: 1. Calculate return on investment (ROI) for this investment center (show separately the two major components of the ROI calculation). Round all computations to two decimal places. 2. Calculate residual income (RI) for this investment center. 3. Comment briefly the York's performance based on your calculations in 1 and 2. Selected data from York Company's accounting records reveal the following: Sales Average investment Operating income Minimum rate of return. $ 700,000 $ 350,000 $ 50,000 12% Required: 1. Calculate return on investment (ROI) for this investment center (show separately the two major components of the ROI calculation). Round all computations to two decimal places. 2. Calculate residual income (RI) for this investment center. 3. Comment briefly the York's performance based on your calculations in 1 and 2.
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3 Although the company is performing better than mi... View the full answer
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