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Uno Dos Revenue 6,000,000 18,000,000 Cost of Sales 3,769,500 9,400,000 Allocated corporate overhead 400,000 1,200,000 Other general & administration 772,000 5,700,000 Return on Investment 14%
Uno | Dos | |||||||
Revenue | 6,000,000 | 18,000,000 | ||||||
Cost of Sales | 3,769,500 | 9,400,000 | ||||||
Allocated corporate overhead | 400,000 | 1,200,000 | ||||||
Other general & administration | 772,000 | 5,700,000 | ||||||
Return on Investment | 14% | 12% | ||||||
a. Compute net income for each of the divisions. Assume taxes are 35%. b. Calculate the profit margin ratio for each division.
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