Ch 23 Part 5

The vice president of operations of Pavone Company is evaluating the performance of two divisions organized as investment centers. Invested assets and condensed income statement data for the past year for each division are as follows:

Divisional Income Statements

Business Division Consumer Division Sales Cost of goods sold Operating expenses Invested assets $2,250,000 1,320,000 682,500 978,261 $2,550,000 1,330,000 939,500 2,833,333