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The January 2008 income statement for the television division of the Maddux Company is as follows: Sales $240,000 Operating expenses 100,000 Net operating income 140,000
The January 2008 income statement for the television division of the Maddux Company is as follows:
Sales | $240,000 |
Operating expenses | 100,000 |
Net operating income | 140,000 |
Interest expense | 20,000 |
Earnings before taxes | 120,000 |
Tax expense (30%) | 36,000 |
Net Income | $84,000 |
If this divisions invested capital is $400,000 then its return on investment is
A | 30% |
B | 21% |
C | 24.5% |
D | 35% |
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