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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

  • 17.7%

  • 16.9%

  • 15.0%

  • The answer cannot be determined using the information provided.

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