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Sales . $14,720,000 Net operating income . $1,000,960 Average operating assets . $4,000,000 The company's minimum required rate of return.

Eathan House Wares is a division of a major corporation. The following data are for the latest year of operations


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a-What is the division's margin?

b. What is the division's turnover?

c. What is the division's return on investment (ROI)?

d. What is the division's residual income

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Sales ................................................................. $14,720,000
Net operating income .......................................... $1,000,960 Average operating assets .................................... $4,000,000
The company's minimum required rate of return... 14%

Top Answer

a. Division's Margin : 6.8% b. Division's Turnover : 3.68... View the full answer

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