Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year: Retail Division Wholesale Division Operating income $ 7,500,000 $ 4,000,000 Operating assets $ 37,500,000 $ 17,500,000 Assuming that these are the only divisions of Terra Company, what is the ROI for the company as a whole? Multiple Choice 20.00% 20.91% 22.86% 42.86%
Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year: Retail Division Wholesale Division Operating income $ 7,500,000 $ 4,000,000 Operating assets $ 37,500,000 $ 17,500,000 Assuming that these are the only divisions of Terra Company, what is the ROI for the company as a whole? Multiple Choice 20.00% 20.91% 22.86% 42.86%
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter18: Pricing And Profitability Analysis
Section: Chapter Questions
Problem 37P
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Question
Terra Company has two divisions, the Retail Division and the Wholesale Division. The following information was gathered for the two divisions for the current year:
Retail Division | Wholesale Division | ||||||
Operating income | $ | 7,500,000 | $ | 4,000,000 | |||
Operating assets | $ | 37,500,000 | $ | 17,500,000 | |||
Assuming that these are the only divisions of Terra Company, what is the ROI for the company as a whole?
Multiple Choice
20.00%
20.91%
22.86%
42.86%
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