Stevens Company has two divisions that report on a decentralized basis. Their results for 2011 were as follows: Required:
Compute the following amounts for each division:
a.
Return on investment (ROI) if the desired rate of return is 12 per cent.
b.
Residual income if the desired rate of return is 20 per cent.
c.
EVA.
d.
Turnover if the desired rate of return is 25 per cent.
e.
Margin for each division if the desired rate of return is 10 per cent.

Question

Stevens Company has two divisions that report on a decentralized basis. Their results for 2011 were as follows:  Required:
Compute the following amounts for each division: 
a.
Return on investment (ROI) if the desired rate of return is 12 per cent.
b.
Residual income if the desired rate of return is 20 per cent.
c.
EVA.
d.
Turnover if the desired rate of return is 25 per cent.
e.
Margin for each division if the desired rate of return is 10 per cent.

Quizplus · Accepted Answer

The Answer of Stevens Company has two divisions that report on a decentralized basis. Their results for 2011 were as follows:  Required:
Compute the following amounts for each division: 
a.
Return on investment (ROI) if the desired rate of return is 12 per cent.
b.
Residual income if the desired rate of return is 20 per cent.
c.
EVA.
d.
Turnover if the desired rate of return is 25 per cent.
e.
Margin for each division if the desired rate of return is 10 per cent.

Stevens Company Has Two Divisions That Report on a Decentralized