Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the past year ended December 31 are as follows: Division A Division B Revenues $190,000 $125,500 Operating expenses 112,500 92,750 Service department charges 29,500 12,625 Invested assets 225,000 99,000 Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bentz Co. has two divisions, A and B.
Invested assets and condensed
income statement data for each
division for the past year ended
December 31 are as follows: Division A
Division B Revenues $190,000
$125,500 Operating expenses 112,500
92,750 Service department charges
29,500 12,625 Invested assets 225,000
99,000 Using the expanded
expression, determine the profit
margin, investment turnover, and rate
of return on investment for each
division.
Transcribed Image Text:Bentz Co. has two divisions, A and B. Invested assets and condensed income statement data for each division for the past year ended December 31 are as follows: Division A Division B Revenues $190,000 $125,500 Operating expenses 112,500 92,750 Service department charges 29,500 12,625 Invested assets 225,000 99,000 Using the expanded expression, determine the profit margin, investment turnover, and rate of return on investment for each division.
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