Information for two divisions of Superb Entertainment Company is given below:
$\begin{array}{ll}
&\underline{\text { Compact Disc } } &\underline{\text { DVD }} \
\text { Net income } & \$ 60,00 &\$100,000 \
\text {Capital investment } & \$400,000& \$500,000\\

\end{array}$
a. If Superb Entertaiment Company charges each division $ 12 \% $ for capital employed, compute resudual income for the Compact Disc and DVD divisions.

b. Compute the ROI for each division.

Question

Information for two divisions of Superb Entertainment Company is given below:
 $\begin{array}{ll}
&\underline{\text { Compact Disc } } &\underline{\text {  DVD  }} \
\text { Net income } & \$ 60,00 &\$100,000 \
\text {Capital investment } &  \$400,000& \$500,000\\

\end{array}$
a. If Superb Entertaiment Company charges each division $ 12 \% $ for capital employed, compute resudual income for the Compact Disc and DVD divisions.

b. Compute the ROI for each division.

Quizplus · Accepted Answer

The Answer of Information for two divisions of Superb Entertainment Company is given below:
 $\begin{array}{ll}
&\underline{\text { Compact Disc } } &\underline{\text {  DVD  }} \
\text { Net income } & \$ 60,00 &\$100,000 \
\text {Capital investment } &  \$400,000& \$500,000\\

\end{array}$
a. If Superb Entertaiment Company charges each division $ 12 \% $ for capital employed, compute resudual income for the Compact Disc and DVD divisions.

b. Compute the ROI for each division.

Information for Two Divisions of Superb Entertainment Company Is Given