Question
Recreation Equipment Company has several divisions which are investment centers. Data for the Boat Division and the Trailer Division are shown here: Boat Division Trailer
Recreation Equipment Company has several divisions which are investment centers. Data for the Boat Division and the Trailer Division are shown here: Boat Division Trailer Division Operating income $ 70 comma 000 $ 38 comma 000 Total assets at Jan 1 $ 670 comma 000 $ 210 comma 000 Total assets at Dec 31 $ 680 comma 000 $ 210 comma 000 Which of the following statements would be the most meaningful interpretation of this data?
A. Boat Division is more financially successful than Trailer Division because it shows an increase in assets
. B. Trailer Division uses its assets more efficiently than Boat Division because it has higher ROI.
C. Boat Division shows more efficient use of assets than Trailer Division because it has higher operating income.
D. Performance of Boat Division is better than that of Trailer Division because Boat Division has higher assets.
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