Please do part B Exercise 22-20 (Part Level Submission) Presented below is selec

Question

Please do part B

Exercise 22-20 (Part Level Submission) Presented below is selected information for three regional divisions of Medina Company. Divisions Contribution margin Controllable margin Average operating North $301,000 $140,600 $937,33:3 West $500,500 $360,800 South $399,300 $209,100 $2,004,444 $1,394,000 assets Minimum rate of return 12% 14 % 10% Your answer is correct Compute the return on investment for each division. (Round ROI to O decimal places, e.g. 15.) North Division West Division 15 % 18 % 15 % South Division

Explanation / Answer

Residual income=Controllable margin-(Average operating assets*Minimum required return)

Residual income North Division[140600-(937333*12%)] $28120 West Division[360800-(2004444*0.14] $80178 South Division[209100-(1394000*0.1)] $69700.

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