HW 18 - does his bonus 3 Headquarters is anxious since it...

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Jack Meehan 10/30/2007 Accounting 152 12-23 Section 11 Sales 21000000 Variable Expenses 13400000 CM 7600000 Fixed Expenses 5920000 NOI 1680000 Divisional operating assets 5250000 ROI= NOI 0.32 assets new I/s Sales 30000000 Var Expenses 19250000 CM 10750000 Fixed Expenses 8440000 NOI 2310000 New ROI= 0.28 2 If I were Fred Halloway, I'd reject it since even though it increases NOI, ROI goes down and so
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Unformatted text preview: does his bonus. 3 Headquarters is anxious since it will raise NOI 4 RI = NOI - (Avg Op Assets x Min RoR) 892500 before the addition 1072500 after the addition I would accept it since his residual income goes up....
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