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.

Analyze and interpret uniform distribution to find probabilities.

Calculate and interpret the probability of events under specific conditions using appropriate statistical models.

Understand the concept of independence in probability and its implications.

Apply concepts of means and standard deviations to find probabilities in Normal distribution scenarios.

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Definitions:

Endorse

To give public approval or support to something or someone, often used in the context of brands, policies, or candidates.

Partnership

A legal arrangement in which two or more individuals or entities agree to operate a business jointly and share its profits and losses.

Order Instrument

A financial instrument or document that is payable to a specific person or entity, as named on the document.

Delivery

The act of transferring something from one party to another, often referring to goods, documents, or titles.