der the following data and determine w Domestic erating income $ 8,000,000 erage total assets 20,000,000 Begin by selecting the formula to calculate Domestic International In terms of return on investment (ROI) th

Cornerstones of Cost Management (Cornerstones Series)
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Author:Don R. Hansen, Maryanne M. Mowen
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Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing
Section: Chapter Questions
Problem 1CE: Forchen, Inc., provided the following information for two of its divisions for last year: Required:...
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Consider the following data and determine which of the corporate divisions is more profitable. Explain your reasoning.
Domestic
International
Operating income
$8,000,000 $
11,000,000
Average total assets
20,000,000
32,000,000
C
Begin by selecting the formula to calcula return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Enter your answer as a percent rounded to one decimal place, X.X%)
ROI
%
Domestic
%
International
In terms of return on investment (ROI) the
Division is more profitable because
Transcribed Image Text:Consider the following data and determine which of the corporate divisions is more profitable. Explain your reasoning. Domestic International Operating income $8,000,000 $ 11,000,000 Average total assets 20,000,000 32,000,000 C Begin by selecting the formula to calcula return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Enter your answer as a percent rounded to one decimal place, X.X%) ROI % Domestic % International In terms of return on investment (ROI) the Division is more profitable because
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