CalculatorData 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.SalesIncome from OperationsInv. AssetsRate of Return on Inv.Profit MarginInvest. TurnoverA$ $35,000 $200,000 % %1.6 B$455,000 $ $284,37516% % 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?

Answered: a. Determine the missing items. Round…

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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