Question

Presented below is selected information for two divisions of Juliana Company: Eastern Western Sales $600,000 $750,000...

Presented below is selected information for two divisions of Juliana Company:
Eastern Western
Sales $600,000 $750,000
Controllable margin 50,000 70,000
Average operating assets 100,000 200,000
Calculate the return on investment for each division. (Round answers to 2 decimal places, e.g. 15.25%.)
Return on investment
Eastern division %
Western division %
What is the residual income for each division if the required rate of return is 12%?
Residual Income
Eastern division $
Western division $

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