Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please help me solve #8 . thank you Which statement is true regarding divisional performance? If a division's return on imvestment is less than its
please help me solve #8 . thank you
Which statement is true regarding divisional performance? If a division's return on imvestment is less than its margin, then the division's sales are greater than its average operating assets. A reduction in selling and administrative expenses increases a division's margin but does not increase lits retum on investment if the division's turnover is less than one. If a division's return on investment is greater than its margin, then the division's sales are less than its average operating assets. An increase in selling and administrative expenses will reduce a division's margin and its return on investment even if the division's turnover is less than one. None of the above statements is true. Question 9 5 pts Calvin Corporation has two divisions, East Division and West Division. In Year 1, the West Division reports a return on investment of 10% and sales of $510,000. In Year 2 , the West Division reports a return on investment of 24%, operating income of $108,800, and a turnover of 1.50 . The West Division's margin in Year 2 is 125% of its margin in Year 1 . What is the West Division's operating income in Year 1? $52,480$65,280$78,080$81,600 None of the above Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started