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:
Motor Development
The progression of muscular coordination and the ability of the body to move and manipulate objects, which occurs in stages from simple reflexes to complex movements.
Cephalocaudal
A pattern of growth and development where physical and motor skills develop from the head downwards through the body.
Proximodistal
A pattern of development where growth happens from the center of the body outward, observed in human and animal development.
Myelination
The process of forming a myelin sheath around a nerve to allow electrical impulses to transmit quickly and efficiently across nerve cells.
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