Return on investment The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating Income Invested Assets Retail Division $96,800 $440,000 Commercial Division 390,000 97,500 Internet Division 124,200 460,000 a. Compute the return on investment for each division. (Round to the nearest whole percentage.) Division Percent Retail Division Commercial Division Internet Division % b. Which division is the most profitable per dollar invested?

Return on investment The operating income and the amount of invested assets in each division of Conley Industries are as follows: Operating Income Invested Assets Retail Division $96,800 $440,000 Commercial Division 390,000 97,500 Internet Division 124,200 460,000 a. Compute the return on investment for each division. (Round to the nearest whole percentage.) Division Percent Retail Division Commercial Division Internet Division % b. Which division is the most profitable per dollar invested?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Cost Behavior - Operating leverage and profitability analysis Discuss how understanding cost behavior leads to better decision-making and increased profits. Make a recommendation as to the best formula to use to assess a company's profitability. Please provide specific examples.
I need solution...
based on the attached what is the answer?
1. why companies need to transfer price and advantages? 2. explain the transfer pricing method that is used / can be used in this company. Explain the advantages and disadvantages?
What would be a meaningful KPI for a marketing organization? O Average daily attendance (ADA) O Sales qualified leads (SQL) O Return on investment (ROI) O Operational cash flow (OCF)
Explain the main criterion to evaluate the investment policy of a business.
A segment of a business responsible for both revenues and expenses would be called: Multiple Choice a cost center. a profit center. residual income. an investment center.
Cost-Volume-Profit (CVP) Analysis: Understanding Business Dynamics Cost-Volume-Profit (CVP) analysis is a financial management tool that plays a pivotal role in helping businesses understand the relationships between costs, volume of production, sales, and profits. This analytical technique provides valuable insights into the financial implications of various business decisions, making it an essential component of strategic planning and decision-making processes. Components of CVP Analysis: Fixed Costs: These are costs that remain constant regardless of the level of production or sales. Examples include rent, salaries, and insurance. Fixed costs are crucial in understanding the breakeven point - the point at which total revenue equals total costs. Variable Costs: Variable costs fluctuate in direct proportion to changes in production or sales volume. Examples include raw materials, direct labor, and variable manufacturing overhead. Understanding variable costs is vital for assessing…
Cost-volume-profit (CVP) analysis for revenue planning determines: The desired profit level of a firm. Both revenue maximization and cost minimization. The costs associated with a certain level of revenue. The max amount of revenue a firm can receive. The revenue required to achieve a desired profit level.
Explain the meaning of the undernoted measures that may be used for divisional performance measurement and investment decision-making. Discuss the advantages and problems associated with: Return of capital employed