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Searchlight, Inc. uses ROI to evaluate operations and requires the return on its operating units to be 9%. Operating data for the Western division is
Searchlight, Inc. uses ROI to evaluate operations and requires the return on its operating units to be 9%. Operating data for the Western division is shown below:
Sales $1,000,000
Controllable margin 120,000
Total average assets 600,000
Fixed costs 60,000
How much is ROI for the year?
a.17%
b. 30%
c.20%
d.10%
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