Bleu Stone is a division of a major corporation. The following data are for the latest year of operations:
$\begin{array}{l}
\text { Sales } & \$ 33,040,000 \
\text { Net operating income } & \$ 1,453,760 \
\text { Average operating assets } & \$ 8,000,000\
\text { The company's minimum required rate of return }&18\%
\end{array}$

Required:
a. What is the division's return on investment (ROI)?
b. What is the division's residual income?

Question

Bleu Stone is a division of a major corporation. The following data are for the latest year of operations:
 $\begin{array}{l}
\text { Sales } & \$ 33,040,000 \
\text { Net operating income } & \$ 1,453,760 \
\text { Average operating assets } & \$ 8,000,000\
\text { The company's minimum required rate of return }&18\%
\end{array}$

Required:
a. What is the division's return on investment (ROI)?
b. What is the division's residual income?

Quizplus · Accepted Answer

The Answer of Bleu Stone is a division of a major corporation. The following data are for the latest year of operations:
 $\begin{array}{l}
\text { Sales } & \$ 33,040,000 \
\text { Net operating income } & \$ 1,453,760 \
\text { Average operating assets } & \$ 8,000,000\
\text { The company's minimum required rate of return }&18\%
\end{array}$

Required:
a. What is the division's return on investment (ROI)?
b. What is the division's residual income?

Bleu Stone Is a Division of a Major Corporation Required: A

Bleu Stone Is a Division of a Major Corporation Required:
A