$14,720,000 Net operating income $1,000,960 Average operating assets $4,000,000 The company’s minimum required rate of return 14%

Cornerstones of Cost Management (Cornerstones Series)
4th Edition
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Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 18E: The following selected data pertain to the Argent Division for last year: Required: 1. How much is...
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Eacher Wares is a division of a major corporation. The following data are for the latest year of operations:

Sales

$14,720,000

Net operating income

$1,000,960

Average operating assets

$4,000,000

The company’s minimum required rate of return

14%


a. What is the division's margin?
b. What is the division's turnover?
c. What is the division's return on investment (ROI)?
d. What is the division's residual income? 

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