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34. Kase Tractor Company allows its divisions to operate as autonomous units. The operating data for 20X5 follow: Revenues Accounts receivable Operating assets Net operating
34. Kase Tractor Company allows its divisions to operate as autonomous units. The operating data for 20X5 follow: Revenues Accounts receivable Operating assets Net operating income Taxable income Plows $2,250,000 800,000 1,000,000 220,000 165,000 Tractors $500,000 152,500 400.000 60,000 90,000 Combines $4,800.000 1.435,000 1.750,000 480,000 385,000 Required: a. Compute the investment turnover for each division. b. Compute the return on sales for each division, c. Compute the return on investment for each division. d. Which division manager is doing best? Why? Hints: For parts (b) and (c) income is defined as operating income
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