Recreation Equipment Company Has Several Divisions That Are Investment Centers

question 72

True/False

Recreation Equipment Company has several divisions that are investment centers. Data for the Boat Division and the Trailer Division are shown here:
$\begin{array}{|l|c|c|} \hline& \text { Boat Division } & \text { Trailer Division } \\\hline \text { Operating income } & \$ 90,000 & \$ 36,000 \\\hline \text { Total assets at Jan } 1 & \$ 670,000 & \$ 230,000 \\\hline \text { Total assets at Dec } 31 & \$ 710,000 & \$ 220,000\\\hline\end{array}$ With regard to the efficient use of assets, the Boat Division has a higher ROI (Return on Investment) because it has the highest operating income.

---

Definitions:

Frames

in the context of communication and perception, refers to the mental structures that shape the way individuals interpret and respond to information.

Conversations

The informal exchange of ideas, information, or feelings between two or more people through spoken word or written communication.

Metaphors

Figurative language used to represent concepts or ideas by comparing them explicitly or implicitly to something else.

Analogies

Comparisons made between two different things that highlight a similarity or relational understanding.