Batman Abstract Company Has Three Divisions That Operate Autonomously The Company's Desired Rate of Return Is 20

question 110

Essay

Batman Abstract Company has three divisions that operate autonomously.Their results for 2015 are as follows:
$$\begin{array} { | l | r | r | r | } \hline & { \text { Riddler } } & { \text { Joker } } & { \text { Penguin } } \\\hline \text { Sales } & \$ 5,000,000 & \$ 7,000,000 & \$ 10,000,000 \\\hline \text { Contribution margin } & 1,440,000 & 1,700,000 & 3,500,000 \\\hline \text { Pperating income } & 1,000,000 & 1,750,000 & 2,520,000 \\\hline \text { Investment base } & 9,000,000 & 10,000,000 & 14,000,000 \\\hline\end{array}$$ The company's desired rate of return is 20%.
Required:
a.Compute each division's ROI.
b.Compute each division's residual income.
c.Rank each division by both ROI and residual income.
d.Which division had the best performance in 2015? Why?

Recognize different forms of power and how followers’ perception influences the effectiveness of leadership.

Understand the role and characteristics of a free-rein leader and the type of followers they require.

Identify and explain the sources of legitimate and expert power within organizations.

Describe the concept of a group, including its characteristics and reasons why individuals join groups.

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Definitions:

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases, and vice versa.

Opposite Directions

Refers to two or more entities, trends, or forces moving in contrary paths or exhibiting contrary behavior in a given context.

Omitted Variable

An Omitted Variable is a relevant variable that has been left out of a regression model, potentially leading to biased results.

Laboratory Experiments

Controlled testing environments where researchers manipulate variables to observe and measure their effects, often used in scientific and social science research.