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

question 17

Essay

Craylon Corp has three divisions,which operate autonomously.Their results for 2015 were as follows:
$$\begin{array} { | l | r | r | r | } \hline & \text { East } & \text { West } & \text { International } \\\hline \text { Sales } & \$ 30,000,000 & \$ 40,000,000 & \$ 50,000,000 \\\hline \text { Cost of goods sold } & 15,000,000 & 25,000,000 & 37,000,000 \\\hline \text { Operating income } & 4,500,000 & 5,000,000 & 5,500,000 \\\hline \text { Investment base } & 30,000,000 & 32,000,000 & 34,000,000 \\\hline\end{array}$$ 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:

Years

Units of time equal to 365 days, or 366 in a leap year, used as a measure of time duration in relation to the Earth's orbit around the Sun.

Families

Groups of individuals related by blood, marriage, or other legal ties, often living together and providing mutual support.

Sampling Distribution

The probability distribution of a statistic based on a large number of samples from the same population.

Histogram

A graphical representation of the distribution of numerical data, often used to show frequency distributions.