Question
Selected operating data on the two divisions of York Company are given below: Division Eastern Western Sales $ 936,000 $ 1,972,000 Average operating assets $
| Selected operating data on the two divisions of York Company are given below: |
Division | ||||
| Eastern | Western | |||
| Sales | $ | 936,000 | $ | 1,972,000 |
| Average operating assets | $ | 520,000 | $ | 580,000 |
| Net operating income | $ | 98,280 | $ | 147,900 |
| Property, plant, and equipment | $ | 249,000 | $ | 199,000 |
| Required: | |
| 1. | Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "%" sign in your response.) |
| ROI | |
| Eastern division | % |
| Western division | % |
| | |
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ACC 120 Wake Tech Financial Accounting W Connect Plus Access
Authors: J. David Spiceland
1st Edition
1308168926, 978-1308168920
