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Selected operating data on the two divisions of Prism Company are given below: DivisionEastern Western Sales $800,000 $1,850,000 Average operating assets $300,000 $400,000 Operating income$70,000
Selected operating data on the two divisions of Prism Company are given below:
DivisionEastern Western
Sales $800,000 $1,850,000
Average operating assets $300,000 $400,000
Operating income$70,000 $115,000
Plant and equipment$125,000 $200,000
Required:
1.Compute the rate of return for each division using the ROI formula stated in terms of margin and turnover.(Do not round intermediate calculations.Round your answers to 1 decimal place.)
Eastern Division ___%
Western Division___%
2.Which divisional manager seems to be doing the better job?
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