Dickinson Products is a division of a major corporation. The following data are for the last year of operations: Sale: $16,640,000 Net Operating Income: $399,360 Average Operating Assets: $4,000,000 Min required rate of return: 18% The division's margin is closest to: A) 10.0% B) 2.4% C) 24.0% D) 26.4%

Dickinson Products is a division of a major corporation. The following data are for the last year of operations: Sale: $16,640,000 Net Operating Income: $399,360 Average Operating Assets: $4,000,000 Min required rate of return: 18% The division's margin is closest to: A) 10.0% B) 2.4% C) 24.0% D) 26.4%

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter11: Performance Evaluation And Decentralization

Section: Chapter Questions

Problem 27E: Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the...

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Dickonson Products is a division of a major corporation. The following data are for the last year of operations: Sales... $16,640,000 $399,360 Net operating income Average operating assets $4,000,000 The company's minimum required rate of return. 18% The division's residual income is closest to: Select one: a. $(320,640) b. $1,119,360 c. $399,360 d. $(2,595,840)
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