The Global Products Corporation has three subsidiaries. Medical Supplies Heavy Machinery Electronics Sales $20,040,000 $5,980,000 $4,730,000 Net Income (after taxes) 1,700,000 592,000 402,000 Assets 8,340,000 8,760,000 3,570,000 Which division has the lowest return on sales? Which division has the highest return on assets? Compute the return on assets for the entire corporation?
The Global Products Corporation has three subsidiaries. Medical Supplies Heavy Machinery Electronics Sales $20,040,000 $5,980,000 $4,730,000 Net Income (after taxes) 1,700,000 592,000 402,000 Assets 8,340,000 8,760,000 3,570,000 Which division has the lowest return on sales? Which division has the highest return on assets? Compute the return on assets for the entire corporation?
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 3PA: Macon Mills is a division of Bolin Products. Inc. During the most recent year, Macon had a net...
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- The Global Products Corporation has three subsidiaries.
|
Medical Supplies |
Heavy Machinery |
Electronics |
Sales |
$20,040,000 |
$5,980,000 |
$4,730,000 |
Net Income (after taxes) |
1,700,000 |
592,000 |
402,000 |
Assets |
8,340,000 |
8,760,000 |
3,570,000 |
- Which division has the lowest return on sales?
- Which division has the highest return on assets?
- Compute the return on assets for the entire corporation?
- If the $8,760,000 investment in the heavy machinery division is sold off and redeployed in the medical supplies subsidiary at the same
rate of return on assets currently achieved in the medical supplies division, what will be the new return on assets for the entire corporation?
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