A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Beverage Division Cheese Division Invested assets, beginning $ 2,662 $ 4,455 Invested assets, ending 2,593 4,400 Sales 2,681 3,925 Operating income 349 634 Exercise 22-12 Return on investment LO A1, A2 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year.
A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Beverage Division Cheese Division Invested assets, beginning $ 2,662 $ 4,455 Invested assets, ending 2,593 4,400 Sales 2,681 3,925 Operating income 349 634 Exercise 22-12 Return on investment LO A1, A2 1. Compute return on investment. 2. Compute profit margin. 3. Compute investment turnover for the year.
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter11: Performance Evaluation And Decentralization
Section: Chapter Questions
Problem 27E: Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the...
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A food manufacturer reports the following for two of its divisions for a recent year.
($ millions) | Beverage Division | Cheese Division | |||||
Invested assets, beginning | $ | 2,662 | $ | 4,455 | |||
Invested assets, ending | 2,593 | 4,400 | |||||
Sales | 2,681 | 3,925 | |||||
Operating income | 349 | 634 | |||||
Exercise 22-12 Return on investment LO A1, A2
1. Compute return on investment.
2. Compute profit margin.
3. Compute investment turnover for the year.
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