Question
Selected operating data on the two divisions of Prism Company are given below: DivisionEasternWesternSales$800,000$1,850,000Average operating assets$300,000$400,000Operating income$70,000$115,000Plant and equipment$125,000$200,000 Required: 1. Compute the rate of
Selected operating data on the two divisions of Prism Company are given below:
DivisionEasternWesternSales$800,000$1,850,000Average operating assets$300,000$400,000Operating income$70,000$115,000Plant 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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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
