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Stratton Industries Has Two Divisions

Question 1

Essay

Stratton Industries has two divisions.These divisions reported the following results for the year just ended:
Stratton Industries has two divisions.These divisions reported the following results for the year just ended: Required: a.Calculate the ROI for each division.Which division would you consider to be the most successful? Why? b.Now assume that the company requires a 14% minimum rate of return.Calculate the residual income for each division.Which division would you consider to be the most successful? Why?
Required:
a.Calculate the ROI for each division.Which division would you consider to be the most successful? Why?
b.Now assume that the company requires a 14% minimum rate of return.Calculate the residual income for each division.Which division would you consider to be the most successful? Why?

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