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v2.cengagenow.com eder-OL (Jan to May): Link to Cengage CengageNow2 1 Onine teac

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Question

v2.cengagenow.com eder-OL (Jan to May): Link to Cengage CengageNow2 1 Onine teaching and learning resource from cerg Return on investment The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested Assets Retail Division Commercial Division Internet Division $5,400,000 6,250,000 1,800,000 $30,000,000 25,000,000 12,000,000 a. Compute the return on investment for each division Division Percent ?) Retail Division Commercial Division Internet Division b. Which division is the most profitable per dollar invested? Previous Next Check My Work

Explanation / Answer

A

Return on investment = Return from operations/Investment

Income (A)

Investment (B)

Return on investment (A/B)*100

Retail division

$5,400,000

$30,000,000

18%

Commercial division

$6,250,000

$25,000,000

25%

Internet division

$1,800,000

$12,000,000

15%

B

Which division is the most profitable per dollar invested

Ans

Commercial division with 25% return

A

Return on investment = Return from operations/Investment

Income (A)

Investment (B)

Return on investment (A/B)*100

Retail division

$5,400,000

$30,000,000

18%

Commercial division

$6,250,000

$25,000,000

25%

Internet division

$1,800,000

$12,000,000

15%

B

Which division is the most profitable per dollar invested

Ans

Commercial division with 25% return