Benson Technologies, Inc. has three divisions. Benson has a desired rate of return of 12.5 percent. The operating assets and income for each division are as follows: Operating Operating Divisions Assets Income $ 570,000 840,000 390,000 Printer $ 98,610 Copier 98,280 56,940 Fax Total $1,800,000 $253,830 Benson headquarters has $123,000 of additional cash to invest in one of its divisions. The division managers have identified investment opportunities that are expected to yield the following ROls: Expected ROIS for Additional Investments Divisions Printer 14.0% Copier 13.0% Fax 12.0% Required a-1. Calculate the ROI for each division. a-2. Which division manager is currently producing the highest ROI? on ROI, whicl manager would be most eager to accept the $123,000 of inve funds? c. Based on ROI, which division manager would be least likely to accept the $123,000 of investment funds? d. Which division offers the best investment opportunity for Benson? g. Calculate the residual income: (1) At the corporate (headquarters) level before the additional investment. (2) At the division level before the additional investment. (3) At the investment level, (4) At the division level after the additional investment.

The company had an overall return on investment (ROI) of 15% this year (considering all divisions). Next year the Office Products Division has an opportunity to add a new product line that would require an additional investment that would increase average operating assets by $1,000,000. The cost and revenue characteristics of the new product line per year would be: Sales $2,000,000 Variable expenses 60% of sales Fixed expenses $640,000 Required: 1. Compute the Office Products Division's margin, turnover, and ROI for this year. 2. Compute the Office Products Division's margin, turnover, and ROI for the new product line by itself. 3. Compute the Office Products Division's margin, turnover, and ROI for next year assuming that it performs the same as this year and adds the new product line. 4. If you were in Dell Havasi's position, would you accept or reject the new product line? Explain. 5. Why do you suppose headquarters is anxious for the Office Products Division to add the new product…

Selected financial data for the Photocopies Division of Elizabeth's Business Machines is as follows: Sales $8,200,000 Operating income $2,788,000 Total assets $3,280,000 Current liabilities $400,000 Required rate of return 14% Weighted average cost of capital 3% What is the Photocopier Division's residual income?   Question 16 options:   $459,200   $2,328,800   $3,247,200   $2,689,600

income or loss before income taxes. Selected segment data for Baird Company for the 2017 and 2016 fiscal years follow. Dollar amounts are in millions. Europe, Middle East, & Africa North America Asia Pacific Latin America 2017 Fiscal Year Net operating revenues $ 8,871 $7,532 3,946 5,735 $4,977 2,419 2,372 $4,216 Income before taxes 2,567 17,919 2,511 Identifiable operating assets 2,236 2016 Fiscal Year Net operating revenues 7,241 3,989 4,006 2,266 6,657 2,820 16,866 4,998 2,478 2,324 Income before taxes Identifiable operating assets 4,327 2,125 Required a. Compute the ROI for each of Baird's geographical segments for each fiscal year. Which segment appears to have the best performance during 2017 based on their ROls? Which segment showed the most improvement from 2016 to 2017? (Round your percentage answers to 1 decimal place and other answers to nearest dollar amount.) b. Assuming Baird's management expects a minimum return of 30 percent, calculate the residual income for each…

Kelfour Enterprises has divided its operations into two divisions. Relevant accounting data for each division is as follows:  Divisions Sales   Operating Assets   Operating Income Western Division $ 330,000     $ 280,000     $ 33,000   Eastern Division $ 480,000     $ 330,000     $ 34,500     Kelfour has an additional $68,000 of funds to invest. The manager of the Western Division believes that she can invest the funds at a rate of return (ROI) of 23.00% while the manager of the Eastern Division has found a new investment opportunity that is expected to yield a 21.00% ROI. Kelfour uses residual income (RI) to evaluate managerial performance. The company wide desired ROI is 19.00%. Based on this information   Multiple Choice   The manager of the Western Division would accept the $68,000 additional investment opportunity because it would increase the Division's RI by $2,720.   The manager of the Eastern Division would accept the $68,000 additional investment…

Evaluating Investment Centers Terry Enterprises, Inc. has two divisions-the Foods division and the Clothes division. Historically, Terry has used the division's ROI as the performance measure for the bonus determinations. Terry Foods division has gross total assets of $1,000,000, accumulated depreciation of $350,000, current liabilities of $250,000, and sales of $2,000,000. Foods' operating income is $320,000. Terry Clothes division has gross total assets of $5,000,000, accumulated depreciation of $2,100,000, current liabilities of $1,500,000, and sales of $8,000,000. Clothes' operating income is $870,000. Use the DuPont formula to compute ROI for each division and for Terry Enterprises as a whole. Use operating income and gross total assets as the measures of income and investment. Round answers to the nearest whole percentage. ROI Foods Clothes Terry Enterprises % % %

Long Beach Pharmaceutical Company has two divisions, which reported the following results for the most recent year. Income Average invested capital ROI Division I $ 900,000 $6,000,000 Division II $ 200,000 $1,000,000 15% 20% Which was the more successful division during the year? Think carefully about this, and Required: explain your answer.

Blaser Division had $1,040,000 in invested assets, sales of $1,271,000, income from operations of $205,000, and a minimum acceptable return of 13%. The return on investment for Blaser Division is (round the percentage to one decimal place.)