The Labrador Falls Company Has Three Divisions: a Division, B

question 60

Multiple Choice

The Labrador Falls Company has three divisions: A Division, B Division, and C Division.
$\begin{array}{lcc}&\text {A}&\text {B}&\text {C}\\\text { Sales } & \$ 320,000 & \$ 540,000&?\\\text { Net operating income } & 60,000 & ?&\$24,000 \\\text { Residual income } & ? & 36,000&14,400 \\\text { Average Division Assets } & ? & ?&80,000 \\\text { Cost of Capital } & 12 \% & 16 \%&? \\\text { Profit Margin } & 20 \% & 5 \%&? \\\text { Asset Turnover } & ? & 4.0 &?\\\text { Return investment } & 15 \% & ?&?\end{array}$

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What was B Division's return on investment (ROI) last year?

• A) 16.00%.
• B) 20.00%.
• C) 24.00%.
• D) 33.75%.

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Definitions:

Bilingual

Having the ability to speak two languages fluently.

Collaborative

Working together with one or more people in order to achieve a goal, characterized by mutual respect and contribution.

Having Authority

The power or right to give orders, make decisions, and enforce obedience.

Socioeconomic Status

A measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.