The Sales, Income from Operations, and Invested Assets for Each

question 67

Essay

The sales, income from operations, and invested assets for each division of Garner Company are as follows:
$\begin{array}{llll}\text {Invested}&\text { Income from}\\\text { Assets } & \text { Operations } & \text { Sales } & \\\$ 2,500,000 & \$ 470,000 & \$ 3,000,000 & \text { Division } E \\2,400,000 & 430,000 & 3,600,000 & \text { Division F } \\3,000,000 & 560,000 & 6,000,000 & \text { Division C }\end{array}$ (a)Using the expanded expression, determine the profit margin, investment tumover, and rate of retum on investment for each division. Round to one decinal place.

(b)Which division is (are) the most profitable as per dollar invested?

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Definitions:

FOH Budget Variance

is the difference between the budgeted factory overhead costs and the actual overhead costs incurred.

FOH Volume Variance

A measure used in accounting to describe the difference between the budgeted and actual volume of production, affecting fixed overhead costs.

Standard Cost Variances

Differences between the actual costs incurred and the standard costs that were expected or budgeted, used for budget control and financial analysis.

Raw Materials

Basic substances in their natural, modified, or semi-processed state used as inputs to a production process for manufacturing goods.