Consider the following data and determine which of the corporate divisions is more profitable. Explain your reasoning.DomesticInternationalOperating income$8,000,000 $11,000,000Average total assets20,000,00032,000,000CBegin by selecting the formula to calcula return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Enter your answer as a percent rounded to one decimal place, X.X%)ROI%Domestic%InternationalIn terms of return on investment (ROI) theDivision is more profitable because

The formula to calculate return on Investment is: Return on Investment = Operating Income/ Average…

der the following data and determine w Domestic erating income $ 8,000,000 erage total assets 20,000,000 Begin by selecting the formula to calculate Domestic International In terms of return on investment (ROI) th

der the following data and determine w Domestic erating income $ 8,000,000 erage total assets 20,000,000 Begin by selecting the formula to calculate Domestic International In terms of return on investment (ROI) th

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Production Budget

A budget can be defined as a financial plan designed by an undertaking for a definite period in the future that can contribute towards enhancing the financial success of the business undertaking. It is used to estimate the revenue and expenses. The budget generally takes into account both current and future income and expenses.

Question

Consider the following data and determine which of the corporate divisions is more profitable. Explain your reasoning.
Domestic
International
Operating income
$8,000,000 $
11,000,000
Average total assets
20,000,000
32,000,000
C
Begin by selecting the formula to calcula return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Enter your answer as a percent rounded to one decimal place, X.X%)
ROI
%
Domestic
%
International
In terms of return on investment (ROI) the
Division is more profitable because

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