need help with PA10:3 #2 and #6 -Wescott company has three divisions

| October 3, 2018

I need help with PA10:3 #2 and #6 (managerial accounting, whitecotton, 2014). Wescott company has three divisions: A, B, and C. The company has a hurdle rate of 8 percent. Wescott is considering an expansion project in the upcoming year that will cost $5 million and return $450,000 per year. The project would be implemented by only one of three divisions. Sales rev. for A: $1,255,000 B: $920,000, C: $898,000, Cost of goods sold: A: 776,000 B: 675,000 C: 652,000 Misc. operating expenses A: 64,000 B: 52,000 C: 53,100 Interests and taxes A: 48,000 B: 41,000 C: 41,500 Avg. invested assets A: 8,300,000 B: 1,930,000 C: 3,215,000 Question #2: Compute the residual income for each division. #6 Compute the new ROI and residual income for each division if the project was implemented within that division.

Get a 33 % discount on an order above $ 40
Use the following coupon code:
MERRYXMAS
Get a 33% discount off . Use discount code "MERRYXMAS"
Positive SSL