Alexander Bruce and Jonathon Wayne Are Managers of Two Product

question 37

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 data below,
(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.

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Definitions:

Ultrasound Sonography

A process in which high-frequency sound waves scan the mother’s womb to produce an image of the unborn baby, whose size and shape can then be assessed.

Teratogen

An environmental agent, such as a drug, chemical, virus, or other factor that produces a birth defect.

Environmental Factor

Any external element that can influence the development or outcome of a process or the health of an organism.

Birth Defects

Abnormalities in physical or mental structure or function that are present at birth, affecting body development or function.