Question
Selected sales and operating data for three divisions of different structural engineering firms are given as follows: Division A Division B Division C Sales $
| Selected sales and operating data for three divisions of different structural engineering firms are given as follows: |
| Division A | Division B | Division C | |||||||
| Sales | $ | 6,600,000 | $ | 10,600,000 | $ | 9,700,000 | |||
| Average operating assets | $ | 1,650,000 | $ | 5,300,000 | $ | 2,425,000 | |||
| Net operating income | $ | 376,200 | $ | 1,028,200 | $ | 286,150 | |||
| Minimum required rate of return | 18.00 | % | 19.40 | % | 15.00 | % | |||
| Required: | |
| 1. | Compute the return on investment (ROI) for each division using the formula stated in terms of margin and turnover. (Round your answers to 2 decimal places.)
|
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Basic Accounting Auditing Concepts Internal Auditing And Guiding
Authors: Bertram Bessette
1st Edition
B09PMFWVSJ, 979-8796265253
