Evaluating Investment Centers Terry Enterprises, Inc. has two divisionsthe Foods division and the Clothes division. Historically, Terry has used the divisions ROI as the performance measure for the bonus determinations. Terry Foods division has gross total assets of $1,000,000, accumulated depreciation of $350,000, current liabilities of $250,000, and sales of $2,000,000. Foods operating income is $200,000. Terry Clothes division has gross total assets of $5,000,000, accumulated depreciation of $2,100,000, current liabilities of $1,500,000, and sales of $8,000,000. Clothes operating income is $750,000.

Use the DuPont formula to compute ROI for each division and for Terry Enterprises as a whole. Use operating income and gross total assets as the measures of income and investment.

Hint: Calculate each of the ROIs for Terry Enterprises rounding answers to nearest whole percentage.

	ROI
Foods
Clothes
Terry Enterprises