What is the division’s return on investment (ROI)? 2 answers
What is the division’s return on investment (ROI)? 2 answers
Eban Wares is a division of a major corporation. The following data are for the latest year of operations:
Sales
$10,890,000
Net operating income
$609,840
Average operating assets
$3,000,000
The company’s minimum required rate of return
16%
Required:
a. What is the division’s margin?
b. What is the division’s turnover?
c. What is the division’s return on investment (ROI)?
d. What is the division’s residual income?
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