Rains Nickless Ltd. of Australia has two divisions that operate in Perth and Dar

Question

Rains Nickless Ltd. of Australia has two divisions that operate in Perth and Darwin. Selected data on the two divisions follow:

Division

Compute the return on investment (ROI) for each division. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "%" sign in your response.)

Assume that the company evaluates performance using residual income and that the minimum required rate of return for any division is 16%. Compute the residual income for each division. (Omit the "$" sign in your response.)

Rains Nickless Ltd. of Australia has two divisions that operate in Perth and Darwin. Selected data on the two divisions follow:

Explanation / Answer

1. 789,260/3,100,000= .2546= 25.46 (Perth) 2,201,500/11,900,000= .185= 18.5 (Darwin) 2. 789,260- .16*3,100,000= 293,260 (Perth) 2,201,500- .16*11,900,000= 297,500 (Darwin)

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