The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating IncomeInvested AssetsRetail Division$184,800 $840,000 Commercial Division142,500 570,000 Internet Division197,600 760,000  a.  Compute the return on investment for each division. (Round to the nearest whole percentage.)DivisionPercentRetail Division %Commercial Division %Internet Division %b.  Which division is the most profitable per dollar invested?

Asked Nov 25, 2019

The operating income and the amount of invested assets in each division of Conley Industries are as follows:

  Operating Income Invested Assets
Retail Division $184,800   $840,000  
Commercial Division 142,500   570,000  
Internet Division 197,600   760,000  


a.  Compute the return on investment for each division. (Round to the nearest whole percentage.)

Division Percent
Retail Division  %
Commercial Division  %
Internet Division  %

b.  Which division is the most profitable per dollar invested?


Expert Answer

Step 1

Return on investment:

Return on investment is a ratio between net profit and cost of investment. A high return on investment means the investment’s gain compare favorably to its costs. As a performance measure, Return on Investment is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investment.

Step 2

a.   Following are the computation of return on investment for each divis...


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Operating Income Return on Investment= Invested Assets By putting the value in above formula will get: Operating Income (a) Division Invested Assets (b) Return on Investment a b Retail $184,800 $142,500 $197,600 $840,000 $570,000 $760,000 22% Commercial 25% Internet 26%


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