Question 13 4 pts The Honey Bee has reported the following performance measureme

Question

Question 13 4 pts The Honey Bee has reported the following performance measurement information for their three divisions Granola Brekfast Bars $400,000 $220,000 10% 12% Breakfast Cereal $530,000 14% 12% Cookies Residual Income Return on Investment Minimum Required Rate of Return 9% 8% Assume that each division is presented with an investment opportunity that would yield a rate of return of 13%. If performance is being measured solely on return on investment, will the Breakfast Cereal division accept or reject the opportunity? reject because the return on the investment opportunity is less than the current return on investment reject because the return on the investment opportunity is greater than the minimum required rate of return accept because the return on the investment opportunity is less than the current return on investment accept because the return on the investment opportunity is greater than the minimum required rate of return

Explanation / Answer

Dear Student Thank you for using Chegg Please find below the answer Statementshowing Computations Paticulars Amount Q13 Accept because the return on investment opputunity is greater than minimum required rate of return Q12 Sales              500,000.00 Average Operating Assets           1,000,000.00 Turnover Ratio = 500,000/1000,000 50.00%

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