Texas Company has established a target rate of return of 16% for all divisions. For the most recent year, San Marcos Division generated sales of $10,000,000 and expenses of $7,500,000 . Total assets at the beginning of the year were $5,000,000 and total assets at the end of the year were $7,000,000. Refer to Texas Company. For the most recent year, what was San Marcos Division's return on
investment?
a. 20.83%
b. 35.71%
c. 41.67%
d. 50.00%
C
ROI = Net Income/Average Total Assets
= $(2,500,000/6,000,000)
= 41.67%
You might also like to view...
As a market follower strategy, the ________ emulates the leader's products, name, and packaging, with slight variations
A) counterfeiter B) cloner C) imitator D) adapter E) innovator
Gains and losses caused by the passage of a new law should be classified as extraordinary on the income statement
Indicate whether the statement is true or false
A balanced scorecard
a. records the variances between budgeted and actual revenues and expenses. b. can be used at multiple organizational levels by redefining the categories and measurements. c. is most concerned with organizational financial solvency and business processes. d. all of the above.
The lost-update problem can be resolved by implementing single-user database processing.
Answer the following statement true (T) or false (F)