The following are selected data for the division for the consumer products of ABC Corp for 201' Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the return on sales for the division? 1. 4% 2. 8% 3. 10% 4. 20% O 1 O 2 3. 4

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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The following are selected data for the division for the consumer products of ABC Corp for 2019:
Sales
50,000,000
Average invested capital (assets)
20,000,000
Net income
2,000,000
Cost of capital
8%
What is the return on sales for the division?
1.4%
2. 8%
3.10%
4. 20%
О1
O 2
O 4
3.
Transcribed Image Text:The following are selected data for the division for the consumer products of ABC Corp for 2019: Sales 50,000,000 Average invested capital (assets) 20,000,000 Net income 2,000,000 Cost of capital 8% What is the return on sales for the division? 1.4% 2. 8% 3.10% 4. 20% О1 O 2 O 4 3.
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