Chester, Inc., provided the following information for two of its divisions for last year:

Required:
1. For the Paper Products Division, calculate:

a. Average operating assets

b. Margin

c. Turnover

d. Return on investment (ROT)
2. For the Chemicals Division, calculate:

a. Average operating assets

b. Margin

c. Turnover

d. Return on investment (ROT)
3. What if operating income for the Paper Products Division was $2,000,000? How would that affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios (round to four significant digits).LO1

Transcribed Image Text:

Sales $29,375,000 Operating income 2,350,000 Paper Products Division Chemicals Division $32,400,000 1,296,000 Operating assets, January 1 6,000,000 14,000,000 Operating assets, December 31 5,750,000 13,000,000