Consider the following data for three divisions of a company, X, Y, and Z: Divisional: X Y Z Sales $ 1,357,000 $ 993,000 $ 4,741,000 Operating Income 162,200 113,700 287,400 Investment in assets 379,700 451,800 3,237,200 The return on investment (ROI) for Division X is: Multiple Choice 25.2%. 11.5%. 8.9%. 42.7%. 31.2%.

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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Consider the following data for three divisions of a company, X, Y, and Z:

 

Divisional: X Y Z
Sales $ 1,357,000   $ 993,000   $ 4,741,000  
Operating Income   162,200     113,700     287,400  
Investment in assets   379,700     451,800     3,237,200  
 

 

The return on investment (ROI) for Division X is:

 

Multiple Choice
  •  

    25.2%.

  •  

    11.5%.

  •  

    8.9%.

  •  

    42.7%.

  •  

    31.2%.

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