4,500,000 795,000 2,400,000 Division C Division D 6,800,000 795,000 2,700,000 Required: (a) Using the DuPont formula, determine the following for each division: • Division B o Profit margin (rounded to two decimal places): Investment turmover (rounded to four decimal places): o Rate of return on investment (rounded to one decimal place): • Division C o Profit margin (rounded to two decimal places): o Investment turnover (rounded to four decimal places): o Rate of return on investment (rounded to one decimal place): • Division D o Profit margin (rounded to two decimal places):

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 16E
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The sales, income from operations, and invested assets for each division of Frasier Company are as follows:
Income from
Invested
Sales
Operations
Assets
Division B
$4,900,000
$530,000
$2,300,000
Division C
4,500,000
795,000
2,400,000
Division D
6,800,000
795,000
2,700,000
Required:
(a)
Using the DuPont formula, determine the following for each division:
• Division B
o Profit margin (rounded to two decimal places):
o Investment turnover (rounded to four decimal places):
o Rate of return on investment (rounded to one decimal place):
Division C
o Profit margin (rounded to two decimal places):
o Investment turnover (rounded to four decimal places):
o Rate of return on investment (rounded to one decimal place):
• Division D
o Profit margin (rounded to two decimal places):
Transcribed Image Text:The sales, income from operations, and invested assets for each division of Frasier Company are as follows: Income from Invested Sales Operations Assets Division B $4,900,000 $530,000 $2,300,000 Division C 4,500,000 795,000 2,400,000 Division D 6,800,000 795,000 2,700,000 Required: (a) Using the DuPont formula, determine the following for each division: • Division B o Profit margin (rounded to two decimal places): o Investment turnover (rounded to four decimal places): o Rate of return on investment (rounded to one decimal place): Division C o Profit margin (rounded to two decimal places): o Investment turnover (rounded to four decimal places): o Rate of return on investment (rounded to one decimal place): • Division D o Profit margin (rounded to two decimal places):
(a)
Using the DuPont formula, determine the following for each division:
• Division B
o Profit margin (rounded to two decimal places):
o Investment turnover (rounded to four decimal places):
o Rate of return on investment (rounded to one decimal place):
Division C
o Profit margin (rounded to two decimal places):
o Investment turnover (rounded to four decimal places):
o Rate of return on investment (rounded to one decimal place):
• Division D
o Profit margin (rounded to two decimal places):
o Investment turnover (rounded to four decimal places):
o Rate of return on investment (rounded to one decimal place):
(b)
Which division is the most profitable per dollar invested?
Transcribed Image Text:(a) Using the DuPont formula, determine the following for each division: • Division B o Profit margin (rounded to two decimal places): o Investment turnover (rounded to four decimal places): o Rate of return on investment (rounded to one decimal place): Division C o Profit margin (rounded to two decimal places): o Investment turnover (rounded to four decimal places): o Rate of return on investment (rounded to one decimal place): • Division D o Profit margin (rounded to two decimal places): o Investment turnover (rounded to four decimal places): o Rate of return on investment (rounded to one decimal place): (b) Which division is the most profitable per dollar invested?
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