QUESTION: THE INCOME OPERATIONS AND THE INVESTED ASSETS IN EACH DIVISION ZERO INDUSTRIES ARE AS FOLLOWS: INCOME OPERATIONS RETAIL DIVISION $343,200 COMMERCIAL 320,000 DIVISION INTERNET 176,000 AMOUNT OF OF MAGNETIC FROM INVESTED ASSETS $1,320,000 1,600,000 800,000 DIVISION A. COMPUTE THE RATE OF RETURN ON INVESTMENT FOR EACH DIVISION. B. WHICH DIVISION IS THE MOST PROFITABLE PER DOLLAR INVESTED?

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?

Profit Margin, Investment Turnover, and return on investment The condensed income statement for the Consumer Products Division of Fargo Industries Inc. is as follows (assuming no service department charges): Sales $1,476,000 Cost of goods sold 664,200 Gross profit $811,800 Administrative expenses 295,200 Income from operations $516,600 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 $2,460,000 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 Rate of return on investment fill in the blank 3 % b.  If expenses could be reduced by $73,800 without decreasing sales, what would be the impact on the…

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