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	$	1,494,000	$	827,000	$	4,912,000
Operating Income		180,200		49,500		247,600
Investment in assets		511,500		224,200		2,345,800

The return on sales (ROS) for Division Z is:

Multiple Choice

5.0%.
10.6%.
6.0%.
12.1%.
22.1%.

business accounting

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Answer 1

Answer #1

Return on sales = Operating Income / Sales

Return on sales = $247,600 / $4,912,000

Return on sales = 5.0%

Answer is A. 5.0%

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Answer 2

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