The following are selected data for the division for the cons 2019: es 50,000,000 rage invested capital (assets) 20,000,000 income 2,000,000 t of capital 8%

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 investment for the division?
1. 2%
2. 4%
3. 8%
4. 10%
О1
O 2
3
O 4
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 investment for the division? 1. 2% 2. 4% 3. 8% 4. 10% О1 O 2 3 O 4
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