(7 5 ) Bentz Co has two divisions, A and B Invested assets and condensed income statement data for each division for the past year ended December 31 are as follows Division A Division B Revenues $190,000 $125,500 Operating expenses 112,500 92,750 Service department charges 29,500 12,625 Invested as...

(7.5%) Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for...

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(7.5%) Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the past year ended December 31 are as follows

	Division A	Division B
Revenues	$190,000	$125,500
Operating expenses	112,500	92,750
Service department charges	29,500	12,625
Invested assets	225,000	99,000

a. Prepare condensed income statements for the past year for each division.

b. Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for eachdivision.

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Accounting

ISBN: 978-0324188004

21st Edition

Authors: Carl s. warren, James m. reeve, Philip e. fess

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Question Posted: Feb 08, 2013 02:51 AM

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(7.5%) Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for...

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