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Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center) Net Average Investment Center ElectroniCS
Megamart, a retailer of consumer goods, provides the following information on two of its departments (each considered an investment center) Net Average Investment Center ElectroniCS Sporting goods Sales Income Invested Assets $ 9,500,000 $ 790,500 $ 4,650,000 70,000 5,500,000 8,100,000 1-a. Compute return on investment for each department. Return on Investment Choose Numerator: Choose Denominator: Return on Investment et income Average invested assets Return on investment 790,500S 770,000 I 650,000- 5,500,000! Electronics 17% Sporting Goods S 14% 1-b. Using return on investment, which department is most efficient at using assets to generate returns for the company? Electronics Sporting goods
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