A manufacturer reports the following for two of its divisions for a recent month. Beverage Division Cheese Division Average assets Sales $ 7,200 3,330 $ 13,300 5,440 Income 798 1,130 Exercise 22-12 (Algo) Computing ROI, profit margin, and investment turnover LO A1, A2 For each division, compute: 1. return on investment. 2. profit margin. 3. investment turnover. Required 1 Required 2 Required 3 Compute return on investment. Return on Investment Numerator: / Denominator: Division Beverage Cheese = Return on investment = = < Required 1 Required 2 >

A manufacturer reports the following for two of its divisions for a recent month. Beverage Division Cheese Division Average assets Sales $ 7,200 3,330 $ 13,300 5,440 Income 798 1,130 Exercise 22-12 (Algo) Computing ROI, profit margin, and investment turnover LO A1, A2 For each division, compute: 1. return on investment. 2. profit margin. 3. investment turnover. Required 1 Required 2 Required 3 Compute return on investment. Return on Investment Numerator: / Denominator: Division Beverage Cheese = Return on investment = = < Required 1 Required 2 >

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 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...

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