Problem II

Selected sales and operating data for three divisions of three different companies are given below:

Division A Sales P 6,000,000 Average operating assets 1,500,000 Net operating income 300,000 Minimum required rate of 15% return Division B P 10,000,000 5,000,000 900,000 18% Division C P 8,000,000 2,000,000 180,000 112%