Recreation Equipment Company Has Several Divisions Which Are Investment Centers

question 115

Multiple Choice

Recreation Equipment Company has several divisions which are investment centers. Data for the Boat Division and the Trailer Division are shown here:
$\begin{array}{|l|r|r|}\hline & \text { Boat Division } &{\text { Trailer Division }} \\\hline \text { Operating income } & \$ 90,000 & \$ 36,000 \\\hline \text { Total assets at Jan 1 } & \$ 670,000 & \$ 230,000 \\\hline \text { Total assets at Dec } 31 & \$ 710,000 & \$ 220,000 \\\hline\end{array}$
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How much is the ROI of the Boat Division?

• A) 12.7%
• B) 12.8%
• C) 12.9%
• D) 13.0%

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Definitions:

Congestive Heart Failure (CHF)

A chronic condition where the heart's ability to pump effectively is compromised, leading to the accumulation of fluid in body tissues.

Pulmonary Edema

A condition characterized by excessive fluid in the lungs, which can lead to difficulty breathing and inadequate oxygenation of the blood.

Chronic Bronchitis

A long-term inflammation of the bronchial tubes in the lungs, often resulting from smoking or air pollution, leading to coughing and difficulty breathing.

Pulmonary Embolism

A blockage in one of the pulmonary arteries in the lungs, typically caused by blood clots that travel from the legs or other parts of the body.