Return on Investment The operating income and the amount of invested assets in each division of Otte Industries are as follows: Operating Income Invested Assets Retail Division $176,400 $840,000 Commercial Division 134,400 560,000 Internet Division 167,500 670,000 a. Compute the return on investment for each division. Division Percent Retail Division: % Commercial Division: % Internet Division: % b. Which division is the most profitable per dollar invested?
Return on Investment The operating income and the amount of invested assets in each division of Otte Industries are as follows: Operating Income Invested Assets Retail Division $176,400 $840,000 Commercial Division 134,400 560,000 Internet Division 167,500 670,000 a. Compute the return on investment for each division. Division Percent Retail Division: % Commercial Division: % Internet Division: % b. Which division is the most profitable per dollar invested?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
The operating income and the amount of invested assets in each division of Otte Industries are as follows:
| Operating Income | Invested Assets | ||
| Retail Division | $176,400 | $840,000 | |
| Commercial Division | 134,400 | 560,000 | |
| Internet Division | 167,500 | 670,000 |
a. Compute the return on investment for each division.
| Division | Percent | |
| Retail Division: | % | |
| Commercial Division: | % | |
| Internet Division: | % |
b. Which division is the most profitable per dollar invested?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 3 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education