9. The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Division E Division F Division G Income from Invested Sales Operations $5,000,000 $550,000 Assets $2,400,000 4,800,000 7,000,000 860,000 2,500,000 860,000 2,900,000 (a) Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division. Round to one decimal place. (b) Which is (are) the most profitable per dollar invested? ANS: (a) a) Division E b) Division F c) Division G ANS: (b) 10. Product J is one of the many products manufactured and sold by Oceanside Company. An income statement by product line for the past year indicated a net loss for Product J of $12,250. This net loss resulted from sales of $260,000, cost of goods sold of $186,500, and operating expenses of $85,750. It is estimated that 30% of the cost of goods sold represents fixed factory overhead costs and that 40% of the operating expense is fixed. If Product J is retained, the revenue, costs, and expenses are not expected to change significantly from those of the current year. However, because of the net loss, management is considering the elimination of the unprofitable endeavor. Because of the large number of products manufactured, the total fixed costs and expenses are not expected to decline significantly if Product J is discontinued. Prepare a differential analysis report, dated February 8 of the current year, on the proposal to discontinue Product J. ANS: Oceanside Company Proposal to Discontinue Product J February 8, 20-- Differential revenue from annual sales of product: Revenue from sales Differential cost of annual sales of product: Variable cost of goods sold Variable operating expenses Annual differential income from sales of Product J