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The following information pertains to the three divisions of Merrymount Company: Division X Division Y Division Z ? ? 1,250,000 Sales $ 36,000 $25,000 $
The following information pertains to the three divisions of Merrymount Company: Division X Division Y Division Z ? ? 1,250,000 Sales $ 36,000 $25,000 $ 75,000 Net operating income 300,000 ? ? Average operating assets ? 20% 15% Return on investment 0.10 0.05 ? Margin 1.5 ? ? Turnover 15% 12% 10% Target ROI What are the average operating assets for Division Z? a. $500,000 b. $1,250,000 c. $187,500 d. $75,000
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