Return on Investment The operating income and the amount of invested assets in each division of Otte Industries are as follows:   Operating Income   Invested Assets Retail Division $176,400                 $840,000            Commercial Division 134,400                 560,000            Internet Division 167,500                 670,000            a.  Compute the return on investment for each division. Division Percent   Retail Division:   % Commercial Division:   % Internet Division:   % 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 Otte Industries are as follows:

  Operating Income   Invested Assets
Retail Division $176,400                 $840,000           
Commercial Division 134,400                 560,000           
Internet Division 167,500                 670,000           

a.  Compute the return on investment for each division.

Division Percent  
Retail Division:   %
Commercial Division:   %
Internet Division:   %

b.  Which division is the most profitable per dollar invested?
 

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