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Three divisions of Jameson Co. report the following sales and operating data: Fitness Training Spa Services Sales $530,000 $780,000 Athletic Wear $600,000 Average operating assets $106,000 $156,000 $120,000 Operating income $ 21,200 $ 31,200 $ 30,000 Minimum required rate of return 13% 15% 13% Required: 1. Compute the ROI for each division, using the formula stated in terms of margin and turnover. Fitness training ROI % Spa services % Athletic wear %

Three divisions of Jameson Co. report the following sales and operating data: Fitness Training Spa Services Sales $530,000 $780,000 Athletic Wear $600,000 Average operating assets $106,000 $156,000 $120,000 Operating income $ 21,200 $ 31,200 $ 30,000 Minimum required rate of return 13% 15% 13% Required: 1. Compute the ROI for each division, using the formula stated in terms of margin and turnover. Fitness training ROI % Spa services % Athletic wear %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Three divisions of Jameson Co. report the following sales and operating data: Fitness Training Spa Services Sales $530,000 $780,000 Average operating assets $106,000 $156,000 Athletic Wear $600,000 $120,000 Operating income $ 21,200 $ 31,200 Minimum required rate of return 13% 15% $ 30,000 13% Required: 1. Compute the ROI for each division, using the formula stated in terms of margin and turnover. Fitness training Spa services Athletic wear ROI % % %
Transcribed Image Text:Three divisions of Jameson Co. report the following sales and operating data: Fitness Training Spa Services Sales $530,000 $780,000 Average operating assets $106,000 $156,000 Athletic Wear $600,000 $120,000 Operating income $ 21,200 $ 31,200 Minimum required rate of return 13% 15% $ 30,000 13% Required: 1. Compute the ROI for each division, using the formula stated in terms of margin and turnover. Fitness training Spa services Athletic wear ROI % % %
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