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Return on Investment and Residual Income Johnson Company has two sources of funds: long-term debt and...

Return on Investment and Residual Income
Johnson Company has two sources of funds: long-term debt and equity capital. Johnson Company has profit centers in the following locations with the following net incomes and total assets:

Net Income Assets
Las Vegas $1,260,000 $4,000,000
Dallas 1,500,000 8,000,000
Tampa 2,340,000 12,000,000

a. Calculate ROI for each profit center and rank them from highest to lowest based on ROI.

Round ROI to the nearest whole percentage.

ROI Rank
Las Vegas Answer Answer123
Dallas Answer Answer123
Tampa Answer Answer123

b. Calculate residual income for each profit center based on a desired ROI of 5% and rank them from highest to lowest based on residual income.

ROI Rank
Las Vegas Answer Answer123
Dallas Answer Answer123
Tampa Answer Answer123
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