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.

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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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.

Formula Formula ROI (%) = Net Income Principal Amount × 100

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bartleby, a Learneo, Inc. business

($ 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