Handle Fabrication Is a Division of a Major Corporation

question 73

Essay

Handle Fabrication is a division of a major corporation. Last year the division had total sales of $36,160,000, net operating income of $2,892,800, and average operating assets of $8,000,000. The company's minimum required rate of return is 12%.
Required:
What is the division's return on investment (ROI)?

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Definitions:

8-year-old

Refers to an individual or organism that is eight years of age, a developmental stage often characterized by certain cognitive, emotional, and physical developments in humans.

Gifted

Having exceptional talent or natural ability in one or more areas.

Intelligence

The mental ability to learn from experience, solve problems, and adapt to new situations or environments.

IQ

Stands for Intelligence Quotient, a measure of a person's cognitive abilities and potential in comparison to the larger population, usually determined by standardized tests.