The Following Information Is Available About the Charger Division of Weston

question 30

Essay

The following information is available about the Charger Division of Weston Company.Weston requires a return of 8% from all divisions. $$\begin{array} { | l | l | } \hline \text { Charger Division Earnings from operations } & \$ 12,854,000 \\\hline \text { Charger Division Sales } & \$ 92,500,000 \\\hline \text { Charger Division Identitiable Assets } & \$ 156,000,000 \\\hline\end{array}$$ Required:
(use four decimal places in you calculation)
a.Compute the ROI for the Charger Division.b.Compute the residual income for the Charger Division.

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Definitions:

Advertising Merchandise

Promotional items branded with a logo or slogan and distributed as part of a marketing strategy.

Displaying Merchandise

The practice of arranging products in a retail setting to maximize visibility and aesthetic appeal, thereby enhancing the potential for sales.

Perpetual Inventory System

An inventory accounting method where updates are made continuously to the inventory account as sales or purchases occur.

Gross Method

An accounting practice where purchase discounts are not taken into account in the inventory cost until they are actually realized.