8)Division C:
Return on investment =Net operating Income /Average operating asset
.20 = 82000 / Average operating asset
Average operating asset = 82000 / .20
= $ 410000
Correct option is "B"-410000
9)
Return on investment =Net operating Income /Average operating asset
.15 = 18000 / Average operating asset
Average operating asset = 18000 /.15
= 120000
Correct option is "B"-120000
**There is mistake for division B in net operating income .It is $18000 and not 418000
Division C $1,345,000 $82,000 The following information pertains to the three divisions of Yang Limited: Division...
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The following information pertains to the three divisions of Yang Limited: Division C $1,345,000 $82,000 Division B Division A Sales Net operating income 418,000 $48,000 Average operating $420,000 ? assets Return on ? 20% 15% investment Margin Turnover 0.2 0.015 ? 2.1 ? Target ROI 17% 14% 8% 8 What are the average operating assets for Division C? A. $95,000 $410,000 В. С. $82,000 $420,000 D. 9. What are the average operating assets for Division B? A. $125,000 $120,000 $18,000...
The following information pertains to the three divisions of Yang Company: Division A Division B Division C Sales ? ? $1,345,000 Net operating income $48,000 $18,000 $82,000 Average operating assets $420,000 ? ? Return on investment ? 15% 20% Margin 0.2 0.015 ? Turnover 2.1 ? ? Target ROI 17% 14% 8% What is the turnover for Division C? a.6.670 b.3.28 c.1.500 d.0.20
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