Unformatted text preview: of return is 10%. Required: a. What is the division's margin? 10.9 % b. What is the division's turnover? 4.15 c. What is the division's return on investment (ROI)? 45.2 % PROBLEM #3 The Casket Division of Roybal Corporation had average operating assets of $750,000 and net operating income of $86,700 in March. The company uses residual income to evaluate the performance of its divisions, with a minimum required rate of return of 13%. Required: What was the Casket Division's residual income in March? -10,800...
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- Spring '10
- Managerial Accounting, minimum required rate, Casket Division