Question
The divisional income statements for three divisions of the McLaren Company are shown. McLaren Company Divisional Income Statements For the Year Ending December 31, 2012
The divisional income statements for three divisions of the McLaren Company are shown. McLaren Company Divisional Income Statements For the Year Ending December 31, 2012 Division A Division B Division C Sales Revenue $1,652,000 $1,075,500 $710,500 Operating expenses (974,680) (806,625) (376,565) Operating income before service department charges $677,320 $268,875 $333,935 Service department charges (568,288) (174,231) (248,675) Operating income $109,032 $94,644 $85,260 Additional financial data from the three divisions of the McLaren Company are shown. Division A Division B Division C Invested assets $1,180,000 $717,000 $490,000 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 fill in the blank 6969ef093fec06d_1 9.24 % fill in the blank 6969ef093fec06d_2 13.20 % fill in the blank 6969ef093fec06d_3 17.39 % Feedback Area Feedback Divide Operating income by Invested Assets and express it as a percentage, rounded to to two decimal places. Question Content Area Margin and Turnover One way to analyze the difference in return on investment for each division is to separate the return on investment formula into two calculations: margin and turnover. Margin shows theAPPLY THE CONCEPTS: Calculating margin and turnover
Calculate the margin and the turnover for each division. If required, round margin to the nearest tenth of a percent (for example, 14.6%) and turnover to two decimal places (for example, 0.82).
Division A | Division B | Division C | ||||
Margin | fill in the blank 891e400bdfe901e_1 | % | fill in the blank 891e400bdfe901e_2 | % | fill in the blank 891e400bdfe901e_3 | % |
Turnover | fill in the blank 891e400bdfe901e_4 | fill in the blank 891e400bdfe901e_5 | fill in the blank 891e400bdfe901e_6 |
The division showing the highest operating profitability is Division
ACBC
.
The division showing the highest operating efficiency is Division
ABCB
.
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