Scribe Company,a Manufacturer of Writing Instruments,provides the Following Financial Information

question 10

Multiple Choice

Scribe Company,a manufacturer of writing instruments,provides the following financial information: $$\begin{array} { | l | r | r | } \hline & \text { Pen Division } & \text { Pencil Division } \\\hline \text { Operating income } & \$ 100,000 & \$ 40,000 \\\hline \text { Net sales } & \$ 500,000 & \$ 175,000 \\\hline \text { Total assets at Jan. 1 } & \$ 580,000 & \$ 255,000 \\\hline \text { Total assets at Dec .31 } & \$ 700,000 & \$ 275,000 \\\hline\end{array}$$ Calculate the return on investment for the Pencil Division.(Round your answer to two decimal places.)

• A) 15.63%
• B) 15.09%
• C) 15.69%
• D) 14.55%

---

Definitions:

Outsourcing

The business practice of hiring a party outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.

Benefits Administration

The management and operation of an organization’s employee benefits program, including health insurance, retirement plans, and other non-wage compensations.

Flexible Benefits Plans

Employee benefit plans that allow workers to choose from a range of benefit options tailored to their individual needs.

Economies of Scale

Cost advantages that businesses obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.