Orange Corp. has two divisions: Fruit and Flower. The following information for the past year...
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Accounting
Orange Corp. has two divisions: Fruit and Flower. The following information for the past year is available for each division Sales revenue Cost of goods sold and operating expenses Net operating income Average invested assets Fruit Division Flower Division $780,000 $ 1,170,000 585.000 0.500 292,500 195,000 $ $ 1,950,000 $ 1,625,000 Orange has established a hurdle rate of 6 percent. Required 1-a. Compute each division's return on investment (ROI) and residual income for last year. (Enter your ROl answers as a percentage rounded to two decimal places, (i.e., 0.1234 should be entered as 12.34%)) Fruit Division Flower Division ROI Residual Income (Loss)
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