Question: 5-22 Werck Pharmaceuticals is evaluating its Vioxx division, an investment center. The division has a $45,000 controllable margin and $300,000 of sales. How much will Werck's average operating assets be when its return on investment is 10%?

Question: 5-22 Werck Pharmaceuticals is evaluating its Vioxx division, an investment center. The division has a $45,000 controllable margin and $300,000 of sales. How much will Werck's average operating assets be when its return on investment is 10%?

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 43P: Return on Investment and Economic Value Added Calculations with Varying Assumptions Knitpix Products...

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Werck pharmaceuticals is evaluationg it's Vioxx division

Question: 5-22
Werck Pharmaceuticals is evaluating its Vioxx division, an
investment center. The division has a $45,000 controllable
margin and $300,000 of sales. How much will Werck's average
operating assets be when its return on investment is 10%?

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