=+EX 24-12 Determining missing items in rate of return computation obj. 4

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d. 0.70 The condensed income statement for the International Division of King Industries Inc.

is as follows (assuming no service department charges):

Sales $1,200,000 Cost of goods sold 600,000 __________ Gross profit $ 600,000 Administrative expenses 300,000 __________ Income from operations $ 300,000 __________ __________ The manager of the International Division is considering ways to increase the rate of return on investment.