Question
North South East West Sales $100,000 $25,000 $75,000 $76,000 CGS $50,000 $5,000 $50,674 $45,000 other expenses $25,000 $3,000 $12,894 $15,000 Average total assets $5,000,000 $50,000
North | South | East | West | |||||||||
Sales | $100,000 | $25,000 | $75,000 | $76,000 | ||||||||
CGS | $50,000 | $5,000 | $50,674 | $45,000 | ||||||||
other expenses | $25,000 | $3,000 | $12,894 | $15,000 | ||||||||
Average total assets | $5,000,000 | $50,000 | $300,500 | $567,850 | ||||||||
Using the information, calculate the operating profit percentage for each of the divisions. Comment on how your analysis has changed compared to your analysis of the dollar amounts for each division. | ||||||||||||
Using total assets as the investment, calculate the ROI for each division. Comment on the results. | ||||||||||||
Assume a cost of capital of 10%. Calculate the RI for each of the divisions. Comment on the results. |
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Advanced Accounting
Authors: Gail Fayerman
1st Canadian Edition
9781118774113, 1118774116, 111803791X, 978-1118037911
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