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?
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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?
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