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Division Y of the Mortisen Company produces and sells two products. Each product's operating income and average capital resources are shown below: Product A: Operating
Division Y of the Mortisen Company produces and sells two products. Each product's operating income and average capital resources are shown below: Product A: Operating Income $500,000 Average capital $5,000,000 Product B: Operating Income $350,000 Average capital $4,100,000 Assuming division Y's manager has an opportunity to undertake an investment that would require a $500,000 investment and yield $40,000 in net operating income for its product B, what would the ROI be for the entire division? (Round your percentage answer to the nearest whole percent.) a. 8% b. 9% C. 11% d. 10%
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