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?
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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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?
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