Stratton Industries has two divisions.These divisions reported the following results for the year just ended:
Required:
a.Calculate the ROI for each division.Which division would you consider to be the most successful? Why?
b.Now assume that the company requires a 14% minimum rate of return.Calculate the residual income for each division.Which division would you consider to be the most successful? Why?
Definitions:
Spinal Cord
The long, thin, tubular structure made up of nervous tissue, which extends from the medulla oblongata in the brainstem to the lumbar region of the vertebral column, acting as the principal pathway for transmitting information between the brain and the rest of the body.
Neurons
The fundamental units of the brain and nervous system responsible for receiving sensory input from the external world, processing this information, and sending commands to the body.
Brain
The organ located in the head of an animal that controls its actions, thoughts, feelings, and interactions with the environment; central to the nervous system.
Mood Molecule
A colloquial term often used to refer to serotonin, a neurotransmitter that is linked to regulating mood, emotions, and several other functions in the body.
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