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Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the year ended December 31 are
Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the year ended December 31 are as follows: Division A Division B Revenues Operating expenses $190,000 $125,500 112,500 92,750 Support department allocations 29,500 12,625 Invested assets 225,000 99,000 a. Prepare condensed income statements for the past year for each division. Bentz Co. Divisional Income Statements For the Year Ended December 31 Division A Division B Operating income b. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment (ROI) for each division. Round the profit margin percentage to two decimal places, the investment turnover to four decimal places, and the return on investment to one decimal place. Profit margin Investment turnover Division A Division B % % Rate of return on investment % %
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