Mako Division had the following information: Asset base in Mako Division Net income in Mako Division $400,000 $50,000 Weighted average cost of capital 12% Target ROI Margin for Mako Division 15% 20% What is the turnover ratio for Mako Division? a. 0.625 b. 0.125 c. 0.200 d. 8.000

Survey of Accounting (Accounting I)
8th Edition
ISBN:9781305961883
Author:Carl Warren
Publisher:Carl Warren
Chapter14: Decentralized Operations
Section: Chapter Questions
Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...
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Solve these general accounting issue

Mako Division had the following information:
Asset base in Mako Division
Net income in Mako Division
$400,000
$50,000
Weighted average cost of capital 12%
Target ROI
Margin for Mako Division
15%
20%
What is the turnover ratio for Mako Division?
a. 0.625
b. 0.125
c. 0.200
d. 8.000
Transcribed Image Text:Mako Division had the following information: Asset base in Mako Division Net income in Mako Division $400,000 $50,000 Weighted average cost of capital 12% Target ROI Margin for Mako Division 15% 20% What is the turnover ratio for Mako Division? a. 0.625 b. 0.125 c. 0.200 d. 8.000
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