Boomerang Products Has Three Divisions,which Operate Autonomously The Company's Desired Rate of Return Is 25

Essay

Boomerang Products has three divisions,which operate autonomously.Their results for 2017 were as follows:
$$\begin{array} { | l | r | r | r | } \hline & { \text { Standard } } & { \text { Deluxe } } & { \text { Supreme } } \\\hline \text { Sales } & \$ 30000000 & \$ 40000000 & \$ 50000000 \\\hline \text { Cost of goods sold } & 15000000 & 25000000 & 37000000 \\\hline \text { Operating profit } & 4500000 & 4750000 & 5000000 \\\hline \text { Investment base } & 18000000 & 18555000 & 18650000 \\\hline\end{array}$$
The company's desired rate of return is 25%.
Required:
a.Calculate each division's ROI (round to three decimal places).
b.Calculate each division's residual income.
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