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Retail Sales and Wholesale Sales are the only divisions of Terra Company. The following information was gathered for the two divisions for the current year:
Retail Sales and Wholesale Sales are the only divisions of Terra Company. The following information was gathered for the two divisions for the current year:
Retail Division | Wholesale Division | ||||||
Operating income | $ | 2,500,000 | $ | 6,000,000 | |||
Operating assets | $ | 16,000,000 | $ | 36,000,000 | |||
The company has $1,200,000 in operating assets that are not assigned to either of the divisions and $500,000 in corporate expenses that are not reflected in the information above. Based on this information, what is the ROI for the company as a whole?
Multiple Choice
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17.7%
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16.9%
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15.0%
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The answer cannot be determined using the information provided.
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