Question 28

Refer to Exhibit 11-2. Assume the Refrigerator Division has average operating assets totaling $24,000,000 for the year. What is the division's return on investment (to the nearest hundredth of a percent)?

		40.80%
		17.00%
		24.17%
		58.00%
		None of the answer choices is correct.

Exhibit 11-2 Manford Inc. has two divisions - Refrigerators and Dish Washer. Manford Company Segmented Income Statements For the Current Fiscal Year Ended December 31 Sales Cost of goods sold Gross margin Allocated overhead (from corporate) Selling and administrative expenses Operating income Income tax expense (45%) Net income Refrigerator Division $10,000,000 4,200.000 5.800,000 940,000 780,000 4,080.000 1.836.000 $ 2.244.000 Dish Washer Division $5.400.000 2.660.000 2,740,000 740.000 360.000 1.640,000 738.000 S 902.000