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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 | $ | 6,800,000 | $ | 3,300,000 | |||
Operating assets | $ | 36,800,000 | $ | 16,800,000 | |||
The company has $1,800,000 in operating assets that are not assigned to either of the divisions and $280,000 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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17.73%
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38.12%
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18.84%
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The answer cannot be determined using the information provided.
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