Question
The divisional income statements for three divisions of the Chung Company are shown. Chung Company Divisional Income Statements For the Year Ending December 31, 2013
The divisional income statements for three divisions of the Chung Company are shown.
| Chung Company | |||||||||
| Divisional Income Statements | |||||||||
| For the Year Ending December 31, 2013 | |||||||||
| Division A | Division B | Division C | |||||||
| Sales Revenue | $1,218,000 | $809,600 | $408,000 | ||||||
| Operating expenses | (718,620) | (607,200) | (216,240) | ||||||
| Operating income before service department charges | $499,380 | $202,400 | $191,760 | ||||||
| Service department charges | (228,984) | (8,096) | (110,160) | ||||||
| Operating income | $270,396 | $194,304 | $81,600 | ||||||
Additional financial data from the three divisions of the Chung Company are shown.
| Division A | Division B | Division C | ||||
| Invested assets | $1,160,000 | $704,000 | $480,000 | |||
Calculate the return on investment for each division. If required, round the ROI to the nearest hundredth of a percent (for example, 16.943% would be rounded to 16.94%).
| Division A | Division B | Division C | |
| Return on investment | % | % | % |
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Financial Accounting
Authors: John Stittle, Robert Wearing
1st Edition
1412935024, 9781412935029
