Question
Meets Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows: Sport Terrain City Revenues
Meets Auto Shop Inc. allows its divisions to operate as autonomous units. Their results for the current year were as follows: Sport Terrain City Revenues $1,900,000 $950,000 $6,200,000 Current assets 230,000 40,000 410,000 Capital assets 870,000 660,000 1,590,000 Current liabilities 100,000 100,000 500,000 Net operating income 260,000 70,000 690,000 After-tax income 188,400 36,400 484,400 Weighted average cost of capital 10% 10% 10% Required: For each division compute (to two decimal) the: 1. The margin %? 2. Return on investment (to two decimal) %?
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