Purchase Solution

ROI and Residual Income - New Product Line

Not what you're looking for?

Ask Custom Question

1) Compute the East Division's ROI for last year; also compute the ROI as it would appear if the new product line is added.

2) Compute the East Division's residual income for last year; also compute the residual income as it would appear if the new product line is added.

Please see the attached file for complete question.

Purchase this Solution
Solution Summary

ROI and residual income for the new product line is examined.

Purchase this Solution
Free BrainMass Quizzes
Managing the Older Worker

This quiz will let you know some of the basics of dealing with older workers. This is increasingly important for managers and human resource workers as many countries are facing an increase in older people in the workforce

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Learning Lean

This quiz will help you understand the basic concepts of Lean.

Understanding the Accounting Equation

These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.

Introduction to Finance

This quiz test introductory finance topics.

View More Free Quizzes
Related BrainMass Solutions

  • Return on Investment (ROI) and Residual Income

    Would you accept or reject the new product line and explain I will accept the new product line as the New ROI is 28% which is more than acceptable level of 18%.

  • Return on Investment and Residual Income

    The reason is that the new product line increases the residual income and the performance is judged on residual income. Thus the performance is better with the new product line.

  • Return on investment (ROI) and residual income - Kirsi products

    Compute the east division's residual income for last year, also compute the residual income as it would appear if the new product line is added - 2.

  • Kirsi Products' East Division

    Suppose that Krisi Product's minimum required rate of return on operating assets is 15% and that bonuses are based on residual income. a. Compute the East Division's residual income for last year and after the new product line is added. b.

  • ROI and RI (residual income)

    280006 Kirsi Products: Calculate ROI and RI (residual income) Fred Halloway, East Division Manager: "I know headquarters wants us to add on that new product line, but I want to see the numbers before I make a move.

  • Managerial Accounting

    Residual Income = Net income - Investment X desired ROI Residual Income = 50,000-300,000X8% Residual Income = 26,000 3.)

  • Break-Even Analysis and Planning

    A new technique for estimating the probability of achieving target sales and profits will be discussed. This requires managers to estimate demand for the new product and assign probabilities.

  • Pringly Division: Pricing Strategy for a new product

    Your discussion is 601 words and discusses ROI and residual income compared to the sensitivity analysis, break even and margin of safety analysis done on the new product pricing strategies.

  • Financial Analysis Problem of Acme

    When residual income is used to measure managerial performance, the objective is to maximize the total amount of residual income.? Thus Residual income takes care of capital charge or minimum required return which was missing in ROI.

View More Related Solutions