Question: this is marginal accounting question please solve this with attached requirements thanks to search Iqaluit Corporation recently announced a bonus plan to be awarded to

this is marginal accounting question please solve this with attached requirements
thanks
this is marginal accounting question please solve this with attached requirements thanks
to search Iqaluit Corporation recently announced a bonus plan to be awarded
to the vice-president of the most profitable division. The three managers are
to choose whether the ROI or residual income (RI) will be used

to search Iqaluit Corporation recently announced a bonus plan to be awarded to the vice-president of the most profitable division. The three managers are to choose whether the ROI or residual income (RI) will be used to measure profitability. In addition, they must decide whether investments will be measured using the gross book value (GBV) or net book value (NBV) of assets. Iqaluit defines income as operating income and investments as total assets. The following information is available for the year just ended: Gross Book Accumulated: Division Value of Assets Depreciation Operating Income A $810,000 $405,000 $101,250 740,000 444,000 83,620 240,000 48,000 48,000 14C B NBV ROI (A) [B] ICI 25.00 % 28.25 % 25.00 % OF ENG NEV ROI [A] [B] 25.00 % 28.25 % 25.00 % GBV RI [A] $20.250 181 $9.620 [C] $24,000 Iqaluit uses a required rate of return of 10% on investments to calculate Ri. Calculate ROI and RI for all the three divisions by using GBV and NBV. (Round ROI to 2 decimal places, eg. 15.25%) ROI RI GBV NBV GBV NBV Question 16 of 16 25-2004 Iqaluit uses a required rate of return of 10% on investments to calculate Ri. Calculate ROI and RI for all the three divisions by using GBV and NBV. (Round ROI to 2 decimal places, eg 15.25%) ROH Ri GBV NBV GBV NBV Division A 96 Division 8 96 Division C Which method for calculating performance did each vice-president use if each one wanted to show that his or her division had the best Division % % Which method for calculating performance did each vice president use if each one wanted to show that his or her division had the best performance? The vice-president of division A used The vice-president of division B used The vice-president of division C used

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!