Huntswell Corporation Has Two Major Divisions-Agricultural Products and Industrial Products

question 97

Multiple Choice

Huntswell Corporation has two major divisions-Agricultural Products and Industrial Products. Data for the year just finished is as follows:
$\begin{array}{|l|r|r|} \hline& \text { Agriculture Division } & \text { Industrial Division } \\\hline \text { Sales revenue } & \$ 140,000 & \$ 1,040,000 \\\hline \text { Operating income } & \$ 16,400 & \$ 220,000 \\\hline \text { Average assets } & \$ 300,000 & \$ 5,540,000 \\\hline \text { Target rate of return } & 4.0 \% & 4.0 \% \\\hline\end{array}$
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For the Industrial Division, how much was the ROI?

• A) 5.5%
• B) 4.5%
• C) 4.0%
• D) 3.9%

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Definitions:

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