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Recreation Equipment Company has several divisions that are investment centers. Data for the Boat Division and the Trailer Division are shown? here: Boat Division Trailer
Recreation Equipment Company has several divisions that are investment centers. Data for the Boat Division and the Trailer Division are shown? here:
Boat Division | Trailer Division | |
Operating income | ?$90,000 | ?$36,000 |
Total assets at Jan 1 | ?$670,000 | ?$230,000 |
Total assets at Dec 31 | ?$710,000 | ?$220,000 |
With regard to the efficient use of? assets, the Boat Division has a higher ROI? (Return on? Investment) because it has the highest operating income.
True or False?
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