a. Determine the missing items. Round rate of return on investment, profit margin, and investment turnover answers to one decimal place when required. Div. Sales Income from Operations Inv. Assets Rate of Return on Inv. Profit Margin Invest. Turnover A $ $35,000 $200,000 % % 1.6 B $455,000 $ $284,375 16% % C $525,000 $73,500 $ % % 1.2 D $800,000 $ $ % 13.0% 2.5 E $ $ $250,000 % 16.0% 2.0 b. Which division is most profitable in terms of income from operations? c. Which division is most profitable in terms of rate of return on investment?
a. Determine the missing items. Round rate of return on investment, profit margin, and investment turnover answers to one decimal place when required. Div. Sales Income from Operations Inv. Assets Rate of Return on Inv. Profit Margin Invest. Turnover A $ $35,000 $200,000 % % 1.6 B $455,000 $ $284,375 16% % C $525,000 $73,500 $ % % 1.2 D $800,000 $ $ % 13.0% 2.5 E $ $ $250,000 % 16.0% 2.0 b. Which division is most profitable in terms of income from operations? c. Which division is most profitable in terms of rate of return on investment?
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 16E
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Data for Divisions A, B, C, D, and E are as follows:
a. Determine the missing items. Round rate of return on investment, profit margin, and investment turnover answers to one decimal place when required.
Div. | Sales | Income from Operations | Inv. Assets | Rate of Return on Inv. | Profit Margin | Invest. Turnover | ||||
A | $ | $35,000 | $200,000 | % | % | 1.6 | ||||
B | $455,000 | $ | $284,375 | 16% | % | |||||
C | $525,000 | $73,500 | $ | % | % | 1.2 | ||||
D | $800,000 | $ | $ | % | 13.0% | 2.5 | ||||
E | $ | $ | $250,000 | % | 16.0% | 2.0 |
b. Which division is most profitable in terms of income from operations?
c. Which division is most profitable in terms of rate of return on investment?
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