=+PR 24-3B Divisional income statements and rate of return on investment analysis obj. 4

✔ 2. Retail Division ROI, 18%

1124 Chapter 24 Performance Evaluation for Decentralized Operations A condensed income statement for the Water Sports Division of South Mountain Sports Inc. for the year ended January 31, 2010, is as follows:

Sales $600,000 Cost of goods sold 236,000 ________ Gross profit $364,000 Operating expenses 274,000 ________ Income from operations $ 90,000 ________ ________ Invested assets $500,000