Consider the following data and determine which of the corporate divisions is mo

Question

Consider the following data and determine which of the corporate divisions is more profitable. Explain your reasoning. Domestic International $ 7,000,000 $ 9,000,000 Operating income Average total assets 20,000,000 38,000,000 Begin by selecting the formula to calculate return on investment (ROI), and then enter the amounts to calculate each division's ROI. (Enter your answer as a percent rounded to one decimal place, XX%) ROI Domestic International In terms of return on investment (ROI) the VDivision is more profitable because

Explanation / Answer

Calculate ROI :

Domestic division is more profitable because domestic division has higher ROI .

Operating income / Average operating assets = ROI Domestic 7000000 / 20000000 = 35% International 9000000 / 38000000 = 23.7%

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