If National Co. treats the AB Division as an investment center for performance measurement purposes, what is the before-tax ROI for last year? 22.54%16.67%19.79%34.78% Listed below is selected financial information for the AB Division of National Co. forlast year.Average working capitalGeneral and admin expensesNet salesAverage plant and equipmentCost of goods soldP625,00075,0004,000,0001,775,0003,525,000

Before tax ROI = Income before tax/ Average investment in total assets Before tax ROI = 400,000/…

Answered: If National Co. treats the AB Division…

If National Co. treats the AB Division as an investment center for performance measurement purposes, what is the before-tax ROI for last year? 22.54% 16.67% 19.79% 34.78%

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter12: Balanced Scorecard And Other Performance Measures

Section: Chapter Questions

Problem 6EA: During the current year, Sokowski Manufacturing earned income of $350,000 from total sales of...

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Question

If National Co. treats the AB Division as an investment center for performance measurement purposes, what is the before-tax ROI for last year?

22.54%

16.67%

19.79%

34.78%

Listed below is selected financial information for the AB Division of National Co. for
last year.
Average working capital
General and admin expenses
Net sales
Average plant and equipment
Cost of goods sold
P625,000
75,000
4,000,000
1,775,000
3,525,000

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

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