Return on InvestmentThe income from operations and the amount of invested assets in each division of Beck Industries are as follows:Income fromOperationsRetail DivisionCommercialDivisionInternet DivisionDivisionRetail DivisionCommercial Division$91,200126,500a. Compute the return on investment for each division. (Round to the nearest whole number.)PercentInternet Division81,900%InvestedAssets%$480,000390,000550,000b. Which division is the most profitable per dollar invested?

Return on investment is calculated by dividing income from operations by invested assets. Income…

m Return on Investment The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Retail Division Commercial Division Internet Division Division Retail Division Income from Commercial Division Operations $91,200 81,900 126,500 a. Compute the return on investment for each division. (Round to the nearest whole number.) Percent % % Invested Assets $480,000 % 390,000 550,000 Internet Division b. Which division is the most profitable per dollar invested?

m Return on Investment The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Retail Division Commercial Division Internet Division Division Retail Division Income from Commercial Division Operations $91,200 81,900 126,500 a. Compute the return on investment for each division. (Round to the nearest whole number.) Percent % % Invested Assets $480,000 % 390,000 550,000 Internet Division b. Which division is the most profitable per dollar invested?

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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Return on Investment The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested Assets Retail Division $52,500 $250,000 Commercial Division 93,600 390,000 Internet Division 91,800 540,000 a. Compute the return on investment for each division. (Round to the nearest whole number.) Division Percent Retail Division fill in the blank 1% Commercial Division fill in the blank 2% Internet Division fill in the blank 3% b. Which division is the most profitable per dollar invested?
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4. The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Division Income from Operations Invested Assets Retail Division $5,500,000 $30,000,000 Commercial Division 6,750,000 23,000,000 Internet Division 1,500,000 12,000,000 a. Compute the return on investment for each division. b. Which division is the most profitable per dollar invested?
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Profit Margin, Investment Turnover, and Return on Investment The condensed income statement for the Consumer Products Division of Tri-State Industries Inc. is as follows (assuming no support department allocations): Sales $1,980,000 Cost of goods sold (891,000) Gross profit $1,089,000 Administrative expenses (594,000) Operating income $495,000 The manager of the Consumer Products Division is considering ways to increase the return on investment. a. Using the DuPont formula for return on investment, determine the profit margin, investment turnover, and return on investment of the Consumer Products Division, assuming that $3,300,000 of assets have been invested in the Consumer Products Division. Round the investment turnover to one decimal place. Profit margin fill in the blank 1 % Investment turnover fill in the blank 2 Return on investment fill in the blank 3 % b. If expenses could be reduced by $99,000 without decreasing sales, what would be the impact on…
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