Retail Sales and Wholesale Sales are the only divisions of Terra Company. The following information was gathered for the two divisions for the current year: Operating income Operating assets Multiple Choice Retail Division $ 6,300,000 $36,300,000 The company has $1,300,000 in operating assets that are not assigned to either of the divisions and $230,000 in corporate expenses that are not reflected in the information above. Based on this information, what is the ROI for the company as a whole? 17.30% Wholesale Division $ 2,800,000 $16,300,000
Retail Sales and Wholesale Sales are the only divisions of Terra Company. The following information was gathered for the two divisions for the current year: Operating income Operating assets Multiple Choice Retail Division $ 6,300,000 $36,300,000 The company has $1,300,000 in operating assets that are not assigned to either of the divisions and $230,000 in corporate expenses that are not reflected in the information above. Based on this information, what is the ROI for the company as a whole? 17.30% Wholesale Division $ 2,800,000 $16,300,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Subject: acounting
Transcribed Image Text:Retail Sales and Wholesale Sales are the only divisions of Terra Company. The following information was gathered for the two
divisions for the current year:
Operating income
Operating assets
Multiple Choice
Retail Division
$ 6,300,000
$36,300,000
The company has $1,300,000 in operating assets that are not assigned to either of the divisions and $230,000 in corporate
expenses that are not reflected in the information above. Based on this information, what is the ROI for the company as a whole?
17.30%
Wholesale
Division
$ 2,800,000
$16,300,000
Transcribed Image Text:17,30%
34.53%
16.46%
The answer cannot be determined using the information provided.
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