A food manufacturer reports the following for two of its divisions for a recent year. ($ millions) Beverage Division Cheese Division Invested assets, beginning $ 2,664 $ 4,457 Invested assets, ending 2,594 4,401 Sales 2,682 3,926 Operating income 350 635 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 $ 2,664 $ 4,457 Invested assets, ending 2,594 4,401 Sales 2,682 3,926 Operating income 350 635 1. Compute return on investment.2. Compute profit margin.3. Compute investment turnover for the year.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 37P
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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 | $ | 2,664 | $ | 4,457 | |||
Invested assets, ending | 2,594 | 4,401 | |||||
Sales | 2,682 | 3,926 | |||||
Operating income | 350 | 635 | |||||
1. Compute
2. Compute profit margin.
3. Compute investment turnover for the year.
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