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:

Deviant

Behaviors or actions that deviate from societal norms or standards, often leading to negative judgment or sanctions.

Dysfunction

Abnormal or impaired functioning in individuals or systems, often leading to distress or conflict.

General Paresis

A neurosyphilis manifestation resulting in progressive dementia and physical disability due to brain damage.

Syphilis

A sexually transmitted infection caused by the bacterium Treponema pallidum, known for its varying stages and potential for serious health complications if left untreated.