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I. Swift company has three divisions & expects each division to earn a 16 % target rate of return. The company has the following results
I. Swift company has three divisions & expects each division to earn a 16 % target rate of return. The company has the following results last year: Division 1 2 Profit margin ratio 7.2% 11.7% Division 3 reported the following data; Operating Income Average total assets Net sales Asset turnover ratio RO 2.737 19.7% 1.584 18.5% $1,450,000 16,100,000 26,500,000 a. You are required to calculate ROI & RI for Division 3? (3marks) b. What conclusion you can draw on the basis of performance of the three divisions? (3marks) ticular iob
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