Assume that a division earned operating profits of $500,000 on average operating assets of $2 mil- lion.

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Assume that a division earned operating profits of $500,000 on average operating assets of $2 mil- lion. What is the division's return on investment? Suppose that a second division had operating profits of $3 million and average operating assets of $30 million. Compute this division's ROL. Which division did the better job? Explain. lop6

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Management Accounting

ISBN: 9780324002263

5th Edition

Authors: Don R Hansen, Maryanne M Mowen

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