Alexander Bruce and Jonathon Wayne Are Managers of Two Product

question 83

Essay

Alexander Bruce and Jonathon Wayne are managers of two product lines for Gotham Incorporated.One of them is a candidate for promotion based on performance.Using the following data:
a.Calculate the residual income (assume a target income of 10% return on assets)and the investment center return on assets.
b.Indicate which manager should be recommended for promotion and why.
$\begin{array}{lrr}&\text { Bruce }&\text { Wayne }\\ \text { Revenue } & \$ 205,000 & \$ 270,000 \\\text { Costs } & 189,000 & 232,000 \\\text { Average assets } & 300,000 & 290,000\end{array}$

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Definitions:

Direct Approach

A communication strategy that involves straightforward and clear expression of thoughts or instructions without ambiguity.

Indirect Approach

A communication strategy where the main point or request is presented after providing background information or context, often used to soften the message or persuade.

Audience Resistance

The reluctance or opposition from an audience to accept or agree with the message being communicated.

Circular Reasoning

A logical fallacy in which the conclusion is supported by premises that assume the truth of the conclusion instead of proving it.