The following information relates to last year's operations at the Legumes Division of Gervani Corporation: Minimum required rate of return 14% Return on investment (ROI) 16.5% Sales $970,000 Turnover (on operating assets) 5 times What was the Legume Division's net operating income last year?

The following information relates to last year's operations at the Legumes Division of Gervani Corporation: Minimum required rate of return 14% Return on investment (ROI) 16.5% Sales $970,000 Turnover (on operating assets) 5 times What was the Legume Division's net operating income last year?

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter10: Decentralization: Responsibility Accounting, Performance Evaluation, And Transfer Pricing

Section: Chapter Questions

Problem 18E: The following selected data pertain to the Argent Division for last year: Required: 1. How much is...

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Question

The following information relates to last year's operations at the Legumes Division of Gervani Corporation:
Minimum required rate of return
Return on investment (ROI)
14%
16.5%
Sales
$970,000
Turnover (on operating assets)
5 times
What was the Legume Division's net operating income last year?

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