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tftc4e tftc4e
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5 years ago
The top management at Groundsource Company, a manufacturer of lawn and garden equipment, is attempting to recover from a fire that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged:

Tractor DivisionTiller DivisionDigger Division
Sales$10,000,000(a)$2,400,000
Net operating income$ 1,000,000$1,600,000$ 600,000
Operating assets(b)(c)$ 2,000,000
Return on investment0.200.15(d)
Return on sales(e)0.080.25
Investment turnover(f)(g)1.2

What were the sales for the Tiller Division? (Round the final answer to the nearest whole dollar.)
A) $10,666,667
B) $20,000,000
C) $3,000,000
D) $853,333
Textbook 
Cost Accounting: A Managerial Emphasis

Cost Accounting: A Managerial Emphasis


Edition: 16th
Authors:
Read 51 times
3 Replies

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Replies
wrote...
5 years ago
 B
Explanation:  Return on Sales = Net Income / Sales
0.08 = $1,600,000 / S
S = $1,600,000 / 0.08 = $20,000,000
tftc4e Author
wrote...
5 years ago
Appreciate the effort you put into answering, thank you!
wrote...
5 years ago
You're very welcome
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