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Alexander Bruce and Jonathon Wayne Are Managers of Two Product

Question 37

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Alexander Bruce and Jonathon Wayne are managers of two product lines for Gotham Incorporated. One of them is a candidate for promotion based on performance. Using the data below,
(a) Calculate the residual income (assume a target income of 10% return on assets) and the investment center return on assets.
(b) Indicate which manager should be recommended for promotion and why.
Alexander Bruce and Jonathon Wayne are managers of two product lines for Gotham Incorporated. One of them is a candidate for promotion based on performance. Using the data below, (a) Calculate the residual income (assume a target income of 10% return on assets) and the investment center return on assets. (b) Indicate which manager should be recommended for promotion and why.

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(a) ROAblured image
RI
Bruce: RI = $16,000 - (.10)($...

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