The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested Assets Retail Division $52,500 $250,000 Commercial Division 93,600 390,000 Internet Division 91,800 540,000 a. Compute the return on investment for each division. (Round to the nearest whole number.) Division Percent Retail Division fill in the blank 1% Commercial Division fill in the blank 2% Internet Division fill in the blank 3% b. Which division is the most profitable per dollar invested?
The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested Assets Retail Division $52,500 $250,000 Commercial Division 93,600 390,000 Internet Division 91,800 540,000 a. Compute the return on investment for each division. (Round to the nearest whole number.) Division Percent Retail Division fill in the blank 1% Commercial Division fill in the blank 2% Internet Division fill in the blank 3% b. Which division is the most profitable per dollar invested?
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 10E
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Return on Investment
The income from operations and the amount of invested assets in each division of Beck Industries are as follows:
| Income from Operations | Invested Assets | |||
| Retail Division | $52,500 | $250,000 | ||
| Commercial Division | 93,600 | 390,000 | ||
| Internet Division | 91,800 | 540,000 |
a. Compute the return on investment for each division. (Round to the nearest whole number.)
| Division | Percent |
| Retail Division | fill in the blank 1% |
| Commercial Division | fill in the blank 2% |
| Internet Division | fill in the blank 3% |
b. Which division is the most profitable per dollar invested?
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