Question
Calculate ROI for three different investment centers within a corporation, given three independent sets of information. Each investment center is a separate division of the
Calculate ROI for three different investment centers within a corporation, given three independent sets of information. Each investment center is a separate division of the corporation.
|
| Division A | Division B | Division C |
| Division Sales (profit) margin | 11% | 12% |
|
| Division Turnover | 9% |
|
|
| Division Invested Capital | $450,000 | $1,000,000 | $ 700,000 |
| Division sales |
| $ 700,000 | $3,500,000 |
| Division income |
|
| $ 70,000 |
Required: Calculate ROI for the 3 divisions.
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Managerial Accounting
Authors: Crosson
9th Edition
B00650WABQ
