Oriole Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections...
Oriole Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customers' lots. Oriole expanded into the precut housing market when it acquired Jensen Company, one of its suppliers. In this market, various types of lumber are precut into the appropriate lengths, banded into packages, and shipped to customers' lots for assembly Oriole designated the Jensen Division as an investment center. Oriole uses return on investment (ROI) as a performance measure...
Wyalusing Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customers' lots. Wyalusing expanded into the precut housing market when it acquired Fairmont Company, one of its suppliers. In this market, various types of lumber are precut into the appropriate lengths, banded into packages, and shipped to customers' lots for assembly. Wyalusing designated the Fairmont Division as an investment center. Wyalusing uses return on investment (ROI) as a performance measure...
Calculate the ROI and Residual Income. Wyalusing Industries has manufactured prefabricated houses for over 20 years. The houses are constructed in sections to be assembled on customers' lots. Wyalusing expanded into the precut housing market when it acquired Fairmont Company, one of its suppliers. In this market, various types of lumber are precut into the appropriate lengths, banded into packages, and shipped to customers' lots for assembly. Wyalusing designated the Fairmont Division as an investment center. Wyalusing uses return on...
Q2. For many years, Lawton Industries has manufactured prefabricated houses where the houses are constructed in sections to be assembled on customers’ lots. The company expanded into the pre-cut housing market in 2006 when it acquired Presser Company, one of its suppliers. In this market, various types of lumber are pre-cut into the appropriate lengths, banded into packages, and shipped to customers’ lots for assembly. Lawton decided to maintain Presser’s separate identity and, thus, established the Presser Division as an...