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The following information pertains to the three divisions of Merrymount Company: Division X Division Y Division Z Sales ? ? 1,250,000 Net operating income $36,000
The following information pertains to the three divisions of Merrymount Company: Division X Division Y Division Z Sales ? ? 1,250,000 Net operating income $36,000 $25,000 $75,000 Average operating assets 300,000 ? ? Return on investment ? 20% 15% Margin 0.10 0.05 ? Turnover 1.5 ? ? Target ROI 15% 12% 10% What are the average operating assets for Division Y? a. $208,333 b. $5,000 c. $25,000 d. $125,000
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