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and SummerSpoRs D sion Provide supporting caku lations Tor service depanment cha

ID: 2521416 • Letter: A

Question

and SummerSpoRs D sion Provide supporting caku lations Tor service depanment charges Obj. 4 18% The income from operations and the amount of invested assets in each division of Beck EX 9-10 Return on investment Industries are as follows Income from Operations 55,400,000 6,250,000 1,800,000 Invested Assets 30,000,000 25,000,000 12,000,000 E NOW Retail Division Commercial Division Internet Division A. Compute the return on investment for each division. B. Which division is the most profitable per dollar invested

Explanation / Answer

Requirement A

Requirement B

Commercial division is the most profitable per dollar invested as it has the highest rate of return.

Retail Division Commercial Division Interenet Division Income From operations $54,00,000 $62,50,000 $18,00,000 Invested Assets $3,00,00,000 $2,50,00,000 $1,20,00,000 Rate of return on investment 18.00% 25.00% 15.00%