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

   Plows   Tractors   Combines
Revenues   $2,250,000   $500,000   $4,800,000
Accounts receivable   800,000   152,500   1,435,000
Operating assets   1,000,000   400,000   1,750,000
Net operating income   220,000   60,000   480,000
Taxable income   165,000   90,000   385,000

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.
Textbook 
Cost Accounting

Cost Accounting


Edition: 14th
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cyborgcyborg
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9 years ago
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jerico Author
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#2
9 years ago
This solved my problem perfectly, thank you for your kind input.
gbliss815
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#3
9 years ago
I'm happy to help you, how luck with the others, I noticed you've posted a lot of questions.
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