Return on investmentThe operating income and the amount of invested assets in each division of Conley Industries are as follows:Operating IncomeInvested AssetsRetail Division$9,600,000$40,000,000Commercial Division12,100,00055,000,000Internet Division6,480,00036,000,000a. Compute the return on investment for each division.DivisionPercentRetail Division%Commercial Division%Internet Division%b. Which division is the most profitable per dollar invested?Retail Division

Solution a: Return on Investment = Operating income / invested assets Retail division =…

Operating Income Invested Assets Retail Division $9,600,000 $40,000,000 Commercial Division 12,100,000 55,000,000 nternet Division 6,480,000 36,000,000 . Compute the return on investment for each division.

Operating Income Invested Assets Retail Division $9,600,000 $40,000,000 Commercial Division 12,100,000 55,000,000 nternet Division 6,480,000 36,000,000 . Compute the return on investment for each division.

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 10E

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