Phi Company would like to examine the sales margin and asset components of retur

Question

Phi Company would like to examine the sales margin and asset components of return on investment for three of its divisions and has accordingly prepared the following information: (Click the icon to view the data.) Requirements (a) Compute each division's return on investment, sales margin, and turnover (b) Comment on the divisions'elative rankings on the ratios computed in part a. (c) Compute each division's residual income, assuming a required return on investment of 9% Requirement (a) Compute each division's return on investment, sales margin, and turnover. Begin with return on investment. Select the formula labels and calculate the return on investment for each division. (Enter the return on investment as a percent, rounded to two decimal places, X.xx%.) Return on Division - investment

Explanation / Answer

Return on Investment = Profit/Investment*100

Division Particulars Return on Investment E 77000/590000 13.05% F 89000/710000 12.54% G 179000/1040000 17.21%

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