Question
The Eastern Division of Alpha Company has the following data related to a certain period: Average invested capital $ 677022 Imputed interest rate 10.7 %
The Eastern Division of Alpha Company has the following data related to a certain period:
| Average invested capital | $ | 677022 | |
| Imputed interest rate | 10.7 | % | |
| Revenues | $ | 1801013 | |
| Variable costs | $ | 1127652 | |
| Fixed costs related solely to the division | $ | 654152 |
Calculate the Eastern Division's return on sales for the relevant period. (Present the final answer as a percentage, to 2 decimal places.)
Step by Step Solution
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Step: 1
To calculate the Eastern Divisions return on sales ROS you can use the following formula ROS Net In...
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Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
9th Edition
1337614689, 1337614688, 9781337668262, 978-1337614689
