Question
5. Westchester Company has the following data for this year: Bottling Division Mixing Division Average operating assets $160,000 $400,000 Contribution margin 80,000 250,000 Operating income
5. Westchester Company has the following data for this year:
|
| Bottling Division | Mixing Division |
| Average operating assets | $160,000 | $400,000 |
| Contribution margin | 80,000 | 250,000 |
| Operating income | 40,000 | 60,000 |
| Sales | 200,000 | 600,000 |
| Weighted-average cost of capital | 18% | 18% |
Westchester Company has a target ROI of 18 percent.
Required:
Calculate the following amounts for each division:
a. Return on sales ratio
b. Operating investment turnover
c. ROI
d. Residual income
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E Commerce Operational Aspects Accounting Auditing And Taxation Issues
Authors: Lata Sharma
1st Edition
8177084097, 978-8177084092
