Hargrave Products Has Three Divisions,which Operate Autonomously The Company's Desired Rate of Return Is 15

question 19

Essay

Hargrave Products has three divisions,which operate autonomously.Their results for 2017 were as follows:
$$\begin{array} { | l | r | r | r | } \hline & { \text { East } } & { \text { West } } & \text { International } \\\hline \text { Sales } & \$ 30000000 & \$ 40000000 & \$ 50000000 \\\hline \text { Cost of goods sold } & 15000000 & 25000000 & 37000000 \\\hline \text { Operating profit } & 4500000 & 4750000 & 5000000 \\\hline \text { Investment base } & 30000000 & 30500000 & 31000000 \\\hline\end{array}$$
The company's desired rate of return is 15%.
Required:
a.Compute each division's ROI (round to three decimal places).
b.Compute each division's residual income.
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Definitions:

Psychosocial Theory

A theoretical framework that describes human development across the lifespan through the interaction between psychological processes and social relationships.

Ego Integrity

A sense of coherence and wholeness, reflecting on one's life and accepting it as it is, typically achieved in late adulthood.

Ego Transcendence

A psychological state in which individuals overcome the self-centeredness of the ego, often seen in late adult development.

Ego Integrity

A term from Erikson's theory of psychosocial development referring to the final stage, where one reviews their life and if satisfied, achieves a sense of completeness and fulfillment.