Q1) Information for two divisions of Charming Confections Company is listed below:
| |
Peanut |
Plain |
| Net income |
$60,000 |
$100,000 |
| Capital investment |
$400,000 |
$500,000 |
a. If Charming Confections Company charges each division 12% for capital employed, calculate residual income for Peanut and Plain divisions.
b. Calculate ROI for each division.