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 | $ | 6,400,000 |
| $ | 10,400,000 |
| $ | 9,500,000 |
|
| Average operating assets | $ | 1,600,000 |
| $ | 5,200,000 |
| $ | 2,375,000 |
|
| Net operating income | $ | 352,000 |
| $ | 988,000 |
| $ | 261,250 |
|
| Minimum required rate of return |
| 18.00 | % |
| 19.00 | % |
| 15.00 | % |
Required:
- 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.)
|
| Margin | Turnover | ROI | |||
| Division A |
| % |
| Times |
| % |
| Division B |
| % |
| Times |
| % |
| Division C |
| % |
| Times |
| % |
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1st Edition
3656610797, 978-3656610793
