Calculate the Return on Investment for the following three divisions (round to t

Question

Calculate the Return on Investment for the following three divisions (round to the nearest 10th of a percent (Please show your calculations):

            Division                     Sales              Income from operations      Invested assets

Raynor Division                     $1,260,000                $225,000                   $800,000

Dryer Division              $865,000                   $140,000                   $720,000

Mash Division              $550,000                   $ 75,000                    $450,000

ROI =

Raynor Division:                                                    

Dryer Division:      

Mash Division:

Explanation / Answer

Calculate ROI ;

ROI= Income from operation*100/Invested assets

Raynor division = 225000*100/800000 = 28.1%

Dryer division = 140000*100/720000 = 19.4%

Mash division = 75000*100/450000 = 16.7%

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