Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X...

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Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X...

Consider the following data for three divisions of a company, X, Y, and Z:

Divisional:	X		Y		Z
Sales	$	1,318,000	$	947,000	$	5,411,000
Operating Income		193,000		109,500		334,700
Investment in assets		476,700		435,500		4,500,200

The return on investment (ROI) for Division X is:

Multiple Choice

7.4%.
11.6%.
25.1%.
31.3%.
40.5%.

business accounting

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Answer 1

Answer #1

Return on investment = operating income / investment in assets

= 193000/476700

= 40.5%

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Answer 2

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