Question
Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year:
Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year:
| Retail Division | Wholesale Division | ||||||
| Operating income | $ | 2,590,000 | $ | 6,090,000 | |||
| Operating assets | $ | 16,900,000 | $ | 36,900,000 | |||
Terra Company has set a target return on investment (ROI) of 15% for both divisions. Based on ROI, which division appears to have performed better?
Multiple Choice
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The answer cannot be determined using the information provided..
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Retail division.
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Both divisions have the same results..
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Wholesale division.
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The Accounting And Financial Audit
Authors: Landry Kouamé
1st Edition
620430481X, 978-6204304816
