The operating income and the amount of invested assets in each division of Conley Industries are as follows:   Operating Income Invested Assets Retail Division $9,600,000   $40,000,000   Commercial Division 12,100,000   55,000,000   Internet Division 6,480,000   36,000,000     a.  Compute the return on investment for each division. 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?

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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Return on investment

The operating income and the amount of invested assets in each division of Conley Industries are as follows:

  Operating Income Invested Assets
Retail Division $9,600,000   $40,000,000  
Commercial Division 12,100,000   55,000,000  
Internet Division 6,480,000   36,000,000  

 

a.  Compute the return on investment for each division.

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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