Quest's return on investment is   A. 10.0%   B. 13.3%   C. 27.5%   D. 30.0%

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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The following information pertains to Quest Co.'s Gold Division for the year just ended:

 

Sales

$311,000

 

Variable costs

250,000

 

Traceable fixed costs

50,000

 

Average assets

40,000

 

Required rate of return

10%

 

Quest's return on investment is

 

A.

10.0%

 

B.

13.3%

 

C.

27.5%

 

D.

30.0%

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