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Author Question: Moto Corp allows its divisions to operate as autonomous units. The operating data for 2015 follow: ... (Read 52 times)

D2AR0N

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Moto Corp allows its divisions to operate as autonomous units. The operating data for 2015 follow: 

PlowsTractorsCombines
Revenues$2,250,000$500,000$4,800,000
Accounts receivable800,000152,5001,435,000
Operating assets1,000,000400,0001,750,000
Net operating income220,00060,000480,000
Taxable income165,00090,000385,000
Required:
a.Compute the investment turnover for each division.
b.Compute the return on sales for each division.
c.Compute the return on investment for each division.
d.Which division manager is doing best? Why?
e.What other factors should be included when evaluating the managers? 

For parts (b) and (c) income is defined as operating income.


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Marked as best answer by D2AR0N on Mar 6, 2021

kusterl

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D2AR0N

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Reply 2 on: Mar 6, 2021
Great answer, keep it coming :)


kjohnson

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Reply 3 on: Yesterday
Excellent

 

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