Question
Consider the following data for East and West divisions of Oceans Co: East West Sales $1,800,000 $4,800,000 Costs of Goods Sold 1,080,000 3,120,000 Operating Income
Consider the following data for East and West divisions of Oceans Co:
| East | West | |
| Sales | $1,800,000 | $4,800,000 |
| Costs of Goods Sold | 1,080,000 | 3,120,000 |
| Operating Income | 252,000 | 240,000 |
| Investment in assets | 6,300,000 | 3,000,000 |
The company's required rate of return is 6%.
a. Calculate the ROI for each division b. calculate the residual income (RI) for each division c. calculate the return of sales (ROS) for each division d. Based on the results of your analysis about what is the concern with East division's results? Discuss potential business issues using the analysis above, do not repeat ratio results
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Environmental Health And Safety Audits A Compendium Of Thoughts And Trends
Authors: Lawrence B. Cahill
2nd Edition
1598889737, 978-1598889734
