Chapter 9, Problem 10E

(a)

To determine

Return on investment (ROI): This financial ratio evaluates how efficiently the assets are used in earning income from operations. So, ROI is a tool used to measure and compare the performance of a units or divisions or a companies.

Formula of ROI:

$\text{Return on investment}=\frac{\text{Income from operations}}{\text{Invested assets}}$

The ROI for each division.

(b)

To determine

The profitable division