The Calculating Fashion Company Has Two Operating Divisions: North and South

question 130

Essay

The Calculating Fashion Company has two operating divisions: North and South. The following information was collected from its financial statements.
$$\begin{array} { l r r } & \text { North } & { \text { South } } \\\text { Operating income } & \$ 15,375 & \$ 9,160 \\\text { Sales } & 90,100 & 128,445 \\\text { Average operating assets } & 47,620 & 37,690\end{array}$$
Required:
Compute the following ratios for each division:
a. Profit margin
b. Asset turnover
c. Return on investment (ROI)

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Definitions:

Catalog Retailers

Companies that sell products through printed or online catalogs, allowing customers to shop remotely.

Nonstore

Retail operations that sell products outside of a traditional physical store setup, including online, mobile, and catalog sales channels.

Internet Retailing

The selling of goods and services through the internet, encompassing various e-commerce platforms and websites.

Product Mix

The variety of products or services offered by a company, considering diversity in type, size, and other characteristics.