A manufacturer reports the following for two of its divisions for a recent month. Beverage Division Cheese Division Average assets Sales $ 7,200 3,330 $ 13,300 5,440 Income 798 1,130 Exercise 22-12 (Algo) Computing ROI, profit margin, and investment turnover LO A1, A2 For each division, compute: 1. return on investment. 2. profit margin. 3. investment turnover. Required 1 Required 2 Required 3 Compute return on investment. Return on Investment Numerator: / Denominator: Division Beverage Cheese = Return on investment = = < Required 1 Required 2 >

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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A manufacturer reports the following for two of its divisions for a recent month.
Beverage
Division
Cheese
Division
Average assets
Sales
$ 7,200
3,330
$ 13,300
5,440
Income
798
1,130
Exercise 22-12 (Algo) Computing ROI, profit margin, and investment turnover LO A1, A2
For each division, compute:
1. return on investment.
2. profit margin.
3. investment turnover.
Transcribed Image Text:A manufacturer reports the following for two of its divisions for a recent month. Beverage Division Cheese Division Average assets Sales $ 7,200 3,330 $ 13,300 5,440 Income 798 1,130 Exercise 22-12 (Algo) Computing ROI, profit margin, and investment turnover LO A1, A2 For each division, compute: 1. return on investment. 2. profit margin. 3. investment turnover.
Required 1
Required 2
Required 3
Compute return on investment.
Return on Investment
Numerator:
/ Denominator:
Division
Beverage
Cheese
=
Return on investment
=
=
< Required 1
Required 2 >
Transcribed Image Text:Required 1 Required 2 Required 3 Compute return on investment. Return on Investment Numerator: / Denominator: Division Beverage Cheese = Return on investment = = < Required 1 Required 2 >
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