Data for Divisions A, B, C, D, and E are as follows: a. Determine the missing items. Round return on investment, profit margin, and investment turnover answers to one decimal place when required. Div. Sales Income from Operations Inv. Assets Return on Invest. Profit Margin Invest. Turnover A $fill in the blank 1 $35,000 $200,000 fill in the blank 2 % fill in the blank 3 % 1.6 B $455,000 $fill in the blank 4 $284,375 16% fill in the blank 5 % fill in the blank 6 C $525,000 $73,500 $fill in the blank 7 fill in the blank 8 % fill in the blank 9 % 1.2 D $800,000 $fill in the blank 10 $fill in the blank 11 fill in the blank 12 % 13.0% 2.5 E $fill in the blank 13 $fill in the blank 14 $250,000 fill in the blank 15 % 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 return on investment?

Financial And Managerial Accounting
15th Edition
ISBN:9781337902663
Author:WARREN, Carl S.
Publisher:WARREN, Carl S.
Chapter24: 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 return on investment, profit margin, and investment turnover answers to one decimal place when required.

Div. Sales Income from Operations Inv. Assets Return on Invest. Profit Margin Invest. Turnover
A $fill in the blank 1   $35,000   $200,000 fill in the blank 2 %   fill in the blank 3 % 1.6  
B $455,000   $fill in the blank 4   $284,375 16%   fill in the blank 5 % fill in the blank 6  
C $525,000   $73,500   $fill in the blank 7 fill in the blank 8 %   fill in the blank 9 % 1.2  
D $800,000   $fill in the blank 10   $fill in the blank 11 fill in the blank 12 %   13.0% 2.5  
E $fill in the blank 13   $fill in the blank 14   $250,000 fill in the blank 15 %   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 return on investment? 

 

 

 

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