eBook ate of Return on Investment he income from operations and the amount of in

Question

eBook ate of Return on Investment he income from operations and the amount of invested assets in each division of bevon Industries are as follows: Income from Operations Invested Assets Sporting Goods Division Health Care Division Commercial Division a. Compute the rate of return on investment for each division. (Round to the nearest whole number.) Division $154,000 78,000 73,100 700,000 390,000 430,000 Percent Sporting Goods Division Health Care Division Commercial Division b. Which division is the most profitable per dollar invested? Select

Explanation / Answer

a. Return on Investment = Income From Operations / Invested Assets

Hence the correct answer is :

Note :

b. The correct answer is Sporting Goods Divison

This is because it has the highest Return on Investment.

Divison Percent Sporting Goods Divison 22 % Health Care Divison 20 % Commercial Divison 17 %

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