Question
Flounder, Inc., reported the following results for last year. Liles Division Marston Division Outland Division Net operating income $144,894 $31,500 $246,000 Sales revenue 589,000 150,000
Flounder, Inc., reported the following results for last year.
Liles Division Marston Division Outland Division
Net operating income
$144,894 $31,500 $246,000
Sales revenue
589,000 150,000 1,200,000
Average operating assets
965,960 300,000 1,500,000
(a)Calculate margin for each division.(Round answers to 1 decimal place, e.g. 5.1%.)
Margin
Lile_____%
Marston_____%
Outland______%
Which division generates the highest margin?
select a division
Liles
Outland
Marston
(b)Calculate ROI for each division.(Round answers to 1 decimal place, e.g. 5.1%.)
Return on Investment
Liles______%
Marston_____%
Outland_______%
If the divisions are evaluated based on return on investment, which division is doing the best job?
select a division
Liles
Outland
Marston
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