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For 2012, the New Products Division of Tellis Company Had

Question 13

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For 2012, the New Products Division of Tellis Company had operating income of $7,000,000 and operating assets of $38,800,000. Tellis has set a target return on investment (ROI) of 14% for each of its divisions.
Calculate the return on investment and residual income for New Products in 2012. Did the division meet the target ROI?

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ROI = $7,000,000/$38,800,000 =...

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