Danali Fabrication Is a Division of a Major Corporation

question 34

Essay

Danali Fabrication is a division of a major corporation. Last year the division had total sales of $21,120,000, net operating income of $2,006,400, and average operating assets of $6,000,000. The company's minimum required rate of return is 12%.
Required:
What is the division's return on investment (ROI)?

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Definitions:

Emotional Needs

Fundamental human desires for emotional fulfillment, such as belonging, love, and self-esteem, that brands can address in their offerings.

User Innovations

Innovations created by users rather than manufacturers, often based on personal need, which can influence or lead to new product developments.

Poorly Solved Problems

Issues or challenges that have not been addressed effectively and may still require a suitable solution.

Brand Managers

Professionals responsible for developing and maintaining a brand's image, identity, and strategy to achieve business objectives.