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Question
Alexander Bruce and Jonathon Wayne are managers of two product lines for Gotham Incorporated. One of them is a candidate for promotion based on performance. Using the following data:
a. Calculate the residual income (assume a target income of 10% return on assets) and the investment center return on assets.
b. Indicate which manager should be recommended for promotion and why.
| Bruce | Wayne | |
| Revenue | $205,000 | $270,000 |
| Costs | 189,000 | 232,000 |
| Average assets | 300,000 | 290,000 |
Answer
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Related questions
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Q:
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