all Division mmercial Division za Analytics Division Operating Income Inve $74,000 70,400 75,000 $370,000 320,000 500,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 10E
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Return on investment
The operating income and the amount of invested assets in each division of Stewart Industries are as follows:
Operating Income Invested Assets
$74,000
70,400
75,000
Retail Division
Commercial Division
Data Analytics Division
$370,000
320,000
500,000
a. Compute the return on investment for each division. (Round to the nearest whole percentage.)
Division
Percent
Retall Division
%
%
Commercial Division
Data Analytics Division
b. Which division is the most profitable per dollar invested?
%
Transcribed Image Text:Return on investment The operating income and the amount of invested assets in each division of Stewart Industries are as follows: Operating Income Invested Assets $74,000 70,400 75,000 Retail Division Commercial Division Data Analytics Division $370,000 320,000 500,000 a. Compute the return on investment for each division. (Round to the nearest whole percentage.) Division Percent Retall Division % % Commercial Division Data Analytics Division b. Which division is the most profitable per dollar invested? %
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