The income from operations and the amount of invested assets in each division of Shiner Industries are as follows: Income from Operations Invested Assets Retail Division $107,800 $490,000 Commercial Division 148,800 620,000 Internet Division 110,700 410,000 a. Compute the return on investment for each division. Round to the nearest whole number. Division Percent Retail Division Commercial Division Internet Division b. Which division is the most profitable per dollar invested?
The income from operations and the amount of invested assets in each division of Shiner Industries are as follows: Income from Operations Invested Assets Retail Division $107,800 $490,000 Commercial Division 148,800 620,000 Internet Division 110,700 410,000 a. Compute the return on investment for each division. Round to the nearest whole number. 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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Return on Investment
The income from operations and the amount of invested assets in each division of Shiner Industries are as follows:
| Income from Operations |
Invested Assets |
|||
| Retail Division | $107,800 | $490,000 | ||
| Commercial Division | 148,800 | 620,000 | ||
| Internet Division | 110,700 | 410,000 |
a. Compute the return on investment for each division. Round to the nearest whole number.
| Division | Percent |
| Retail Division | |
| Commercial Division | |
| Internet Division |
b. Which division is the most profitable per dollar invested?
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