Question
Bridgeport, Inc., reported the following results for last year. Liles Division Marston Division Outland Division Net operating income $127,000 $55,200 $243,000 Sales revenue 600,000 150,000
Bridgeport, Inc., reported the following results for last year.
Liles Division Marston Division Outland Division
Net operating income $127,000 $55,200 $243,000
Sales revenue 600,000 150,000 1,200,000
Average operating assets 1,040,000 300,000 1,518,000
(a) Calculate margin for each division. (Round answers to 1 decimal place, e.g. 5.1%.)
Margin
Liles %
Marston %
Outland %
Which division generates the highest margin?
Outland
Liles
Marston
(b) Calculate ROI for each division. (Round answers to 1 decimal place, e.g. 5.1%.)
Return on Investment
Liles
%
Marston
%
Outland
%
If the divisions are evaluated based on return on investment, which division is doing the best job?
Marston
Outland
Liles
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Survey Of Accounting
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