Question
II. Koko Company is a diversified company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions
II. Koko Company is a diversified company with three operating divisions organized as investment centers. Condensed data taken from the records of the three divisions for the year ended December 31 are as follows: Division P Division I Division C Sales 2000000 3000000 3600000 Cost of goods sold 1200000 198000 2700000 Operating expenses 560000 690000 504000 Invested assets 1600000 2000000 2400000 The management of Koko Company is evaluating each division as a basis for planning a future expansion of operations. a. Compute the profit margin for each division. b. Compute the investment turnover for each division c. Compute the rate of return on investment for each division
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