Listed Below Is Selected Financial Information for the Western Division

question 106

Multiple Choice

Listed below is selected financial information for the Western Division of the Henzel Company for last year: $$\begin{array} { l c } \text { Account } & \text { Amount (thousands) } \\\hline \text { Average working capital } & \$ 625 \\\text { General and administrative expenses } & 75 \\\text { Net sales } & 4,000 \\\text { Average plant and equipment } & 1,775 \\\text { Cost of goods sold } & 3,525\end{array}$$ If Henzel treats the Western Division as an investment center for performance evaluation purposes, what is the before-tax return on investment (ROI) for last year? (Round your answer to two decimal places.)

• A) 34.68%.
• B) 26.76%.
• C) 22.54%.
• D) 19.79%.
• E) 16.67%.

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