Answered

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The income from operations and the amount of invested assets in each division of Beck Industries are as follows: Income from Operations Invested Assets Retail Division $5,400,000 $30,000,000 Commercial Division 6,250,000 25,000,000 Internet Division 1,800,000 12,000,000 a. Compute the return on investment for each division.

Sagot :

Zviko

Answer:

Retail Division = 18 %

Commercial Division =  25 %

Internet Division = 15 %

Explanation:

Return on Investment = Net Income / Assets employed x 100

therefore,

Retail Division = $5,400,000 / $30,000,000 x 100

                        = 18 %

Commercial Division = $6,250,000 / $25,000,000 x 100

                                   =  25 %

Internet Division = $1,800,000 / $12,000,000 x 100

                           = 15 %

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