Last Year, Processor Division of Mathews PC Company Earned NOPAT

question 89

Multiple Choice

Last year, Processor Division of Mathews PC Company earned NOPAT of $200,000 on sales of $2,600,000.The division had invested capital of $1,600,000 with $62,000 of noninterest-bearing current liabilities.How much is the division's return on investment?

• A)12.5%
• B)13.0%
• C)7.7%
• D)61.5%

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Definitions:

Workers Engaged

Refers to employees who are actively involved, enthusiastic, and committed to their work.

Absenteeism

The habitual non-presence of an employee at their job, which can be due to various reasons including illness, personal matters, or disengagement with work.

High Cost

pertains to an expense that is considerably above the average or expected expenditure on goods or services.

Practices

Established methods or procedures followed by individuals or organizations in a specific field or profession.