Gabbe Industries is a division of a major corporation. Last year the division had total sales of $27,311,900, net operating income of $2,840,438, and average operating assets of $7,094,000. The company's minimum required rate of return is 15%. Required: a. What is the division's margin? (Round your percentage answer to 2 decimal places.) b. What is the division's turnover? (Round your answer to 2 decimal places.) c. What is the division's return on investment (ROI)? (Round percentage your answer to 2 decimal places.)
Gabbe Industries is a division of a major corporation. Last year the division had total sales of $27,311,900, net operating income of $2,840,438, and average operating assets of $7,094,000. The company's minimum required rate of return is 15%. Required: a. What is the division's margin? (Round your percentage answer to 2 decimal places.) b. What is the division's turnover? (Round your answer to 2 decimal places.) c. What is the division's return on investment (ROI)? (Round percentage your answer to 2 decimal places.)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
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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Gabbe Industries is a division of a major corporation. Last year the division had total sales of $27,311,900, net operating income of $2,840,438, and average operating assets of $7,094,000. The company's minimum required
Required:
a. What is the division's margin? (Round your percentage answer to 2 decimal places.)
b. What is the division's turnover? (Round your answer to 2 decimal places.)
c. What is the division's
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