Answered step by step
Verified Expert Solution
Link Copied!

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
image text in transcribed
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

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions

Question

=+3 To set forth the viewpoints of those who read a business plan

Answered: 1 week ago

Question

Determine miller indices of plane X z 2/3 90% a/3

Answered: 1 week ago

Question

1. Does your voice project confidence? Authority?

Answered: 1 week ago