Presented here is selected information for three regional divisions of Pronghorn Comp Contribution margin Controllable margin Average operating assets Minimum rate of return (a) North Division West Division North South Division $300,800 $141,000 $940.000 12 % Divisions Compute the return on investment for each division. $501,000 $360,800 $1.640,000 West % % % 14 % South $399,600 $210,000 $1,400,000 9 %

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 14.5.2P
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Presented here is selected information for three regional divisions of Pronghorn Compa
Contribution margin
Controllable margin
Average operating assets
Minimum rate of return
(a)
North Division
West Division
North
South Division
$300,800
$141.000
$940.000
12 %
Divisions
Compute the return on investment for each division.
$501.000
$360.800
$1,640,000
West
%
%
%
14 %
South
$399,600
$210.000
$1,400,000
9 %
Transcribed Image Text:Presented here is selected information for three regional divisions of Pronghorn Compa Contribution margin Controllable margin Average operating assets Minimum rate of return (a) North Division West Division North South Division $300,800 $141.000 $940.000 12 % Divisions Compute the return on investment for each division. $501.000 $360.800 $1,640,000 West % % % 14 % South $399,600 $210.000 $1,400,000 9 %
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