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The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a fire that destroyed some of their
The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a fire that destroyed some of their accounting records.
The main computer system was also severely damaged. The following information was salvaged:
Tractor Division
Tiller Division
Digger Division
Sales
Net operating income
Operating assets
Return on investment
Return on sales
Investment fumover
$10,000,000
(a)
$2,900,000
$1,000,000
S1,440,000
$610,000
(b)
(c)
$2,100,000
.2
.1
(d)
(e)
.12
(h)
(f)
(g)
(i)
What is the Digger Division's return on investment?
A. 0.27
B. 0.21
C. 0.41
D. 0.29
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