Question -
What is decentralization? What are the pros and cons of decentralization? What about centralization?
What is a balanced scorecard? How can it help you manage a company? Are there any advantages to using one?
Ohio Golf Inc., specializes in managing and developing golf course communities in Ohio and surrounding states. In the most recent year, the company had a net operating income of $2,000,000 on sales of $10,000,000. The company's average operating assets for the year were $12,000,000 and its minimum rate of return is 15%.
Ignore the impact of income taxes in your calculation.
Compute the company's residual income for the year.