The Following Information Is Available About the Charger Division of Weston

question 44

Essay

The following information is available about the Charger Division of Weston Company. Weston requires a return of 8% from all divisions.
$\begin{array}{lrr}\text { Charger Division Earnings from Operations } & \$ & 12,854,000 \\\text { Charger Division Sales } & \$ & 92,500,000 \\\text { Charger Division Identifiable Assets } & \$ & 156,000,000\end{array}$

Required:
a. Compute the ROI for the Charger Division.
b. Compute the residual income for the Charger Division.

---

Definitions:

Pheromones

Chemical signals released by an organism to affect the behavior or physiology of other members of the same species.

First Messenger

A signaling molecule that binds to a receptor on the surface of a cell and triggers a biochemical cascade that conveys signals inside the cell.

Second Messenger

Intracellular signaling molecules released by the cell in response to exposure to extracellular signaling molecules.

Type 1 Diabetes

A chronic condition where the pancreas produces little to no insulin, leading to elevated blood sugar levels.