Nue Wines Has the Following Data for Its Three Divisions

question 70

Essay

Nue Wines has the following data for its three divisions for the year:
$\begin{array}{lr}&\text {Ein }&\text {Zwei}&\text {Drei}\\\text { Revenues } & \$ 12,000,000&\$38,000,000&\$28,000,000 \\\text { Cost of sales } & 7,695,000&19,000,000&14,000,000 \\\text { Allocated corporate } & \\\text { overhead } & 720,000&2,280,000&2,100,000 \\\text { Other general \& } &\\\text { administration } & 1,585,000 & 11,000,000 & 11,000,000 \\\text { Return on } & & &\\\text {Investment }&15\%&12\%&9\%\end{array}$
Required:
a. Compute divisional operating income for each of the divisions. Assume taxes are 35%.
b. Calculate the profit margin ratio for each division.
c. Calculate the asset turnover for each division.

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Definitions:

Suffix

A letter or group of letters added to the end of a word to alter its meaning or grammatical function.

Activity

Any task or action performed by individuals or groups, often implying movement or engagement.

Suffix

A letter or group of letters added at the end of a word to form a derivative or to change its grammatical function.

Pair

Two items, objects, or individuals that are matched or associated with each other, forming a couple or duo.