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    Milano Corporation three divisions performance calculation

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    Milano Corporation has three operating divisions and requires a 12% rreturn on all investments. Selected information is presented here:

    a. Calculate the missing amounts for each division.
    b. Comment on the relative performance of each division.
    c. Provide an example to show how residual income improves decision making at the division level

    Division A Division B Division C
    Revenues........ $500,000 ? ?
    Operating Income $60,000 ? $80,000
    Operating Assets $250,000 $600,000 ?
    Margin ? 12% ?
    Turnover ? 1turn 2 turns
    ROI ? ? ?
    Residual Income ? ? $20,000

    © BrainMass Inc. brainmass.com June 4, 2020, 1:29 am ad1c9bdddf
    https://brainmass.com/business/accounting/403610

    Solution Summary

    Milano corporation three divisions
    Margin
    ROI
    Residual income

    $2.19

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