The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Division E Division F Division G Profit Margin Sales $5,000,000 4,800,000 7,000,000 Investment Turnover Return on investment Income from Operations $550,000 860,000 860,000 a. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment for each divisi investment to one decimal place. Division E % % Invested Assets b. Which division is the most profitable per dollar invested? $2,400,000 2,500,000 2,900,000 Division F % % Division G % %

The sales, income from operations, and invested assets for each division of Grosbeak Company are as follows: Division E Division F Division G Profit Margin Sales $5,000,000 4,800,000 7,000,000 Investment Turnover Return on investment Income from Operations $550,000 860,000 860,000 a. Using the DuPont formula, determine the profit margin, investment turnover, and return on investment for each divisi investment to one decimal place. Division E % % Invested Assets b. Which division is the most profitable per dollar invested? $2,400,000 2,500,000 2,900,000 Division F % % Division G % %

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter10: Evaluating Decentralized Operations

Section: Chapter Questions

Problem 11E: The operating income and the amount of invested assets in each division of Conley Industries are as...

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Margin, Turnover, Return on Investment, Average Operating Assets Elway Company provided the following income statement for the last year: At the beginning of last year, Elway had 28,300,000 in operating assets. At the end of the year, Elway had 23,700,000 in operating assets. Required: 1. Compute average operating assets. 2. Compute the margin and turnover ratios for last year. (Note: Round the answer for margin ratio to two decimal places.) 3. Compute ROI. (Note: Round answer to two decimal places.) 4. CONCEPTUAL CONNECTION Briefly explain the meaning of ROI. 5. CONCEPTUAL CONNECTION Comment on why the ROI for Elway Company is relatively high (as compared to the lower ROI of a typical manufacturing company).
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