The Global Products Corporation has three subsidiaries.

	Medical Supplies	Heavy Machinery	Electronics
Sales	$	20,820,000	$	5,720,000	$	4,890,000
Net income (after taxes)		1,890,000		597,000		344,000
Assets		8,370,000		8,380,000		3,140,000

a-1.	What is the return on sales for each subsidiary?(Input your answers as a percent rounded to 2 decimal places.)

	Return on Sales
Medical Supplies	%
Heavy Machinery	%
Electronics	%

a-2.	Which subsidiary has the lowest return on sales?
	Medical Supplies Electronics Heavy Machinery

b-1.	What is the return on assets for each subsidiary?(Input your answers as a percent rounded to 2 decimal places.)

	Return on Assets
Medical Supplies	%
Heavy Machinery	%
Electronics	%

b-2.	Which subsidiary has the highest return on assets?
	Medical Supplies Heavy Machinery Electronics

c.	Compute the return on assets for the entire corporation.(Input your answer as a percent rounded to 2 decimal places.)

Return on assets

%

d.

If the $8,380,000 investment in the heavy machinery division is sold off and redeployed in the medical supplies subsidiary at the same rate of return on assets currently achieved in the medical supplies division, what will be the new return on assets for the entire corporation?(Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

New return on assets

%

References