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Selected operating data on the two divisions of York Company are given below: Division Eastern Western Sales $ 1,000,000 $ 1,750,000 Average operating assets $
Selected operating data on the two divisions of York Company are given below: |
Division | ||||
Eastern | Western | |||
Sales | $ | 1,000,000 | $ | 1,750,000 |
Average operating assets | $ | 500,000 | $ | 500,000 |
Net operating income | $ | 90,000 | $ | 105,000 |
Property, plant, and equipment | $ | 250,000 | $ | 200,000 |
|
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 1 decimal place.) |
Margin | Turnover | ROI | |
Eastern division | % | % | |
Western division | % | % | |
|
2. | Which divisional manager seems to be doing the better job? | ||||
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