The Calculating Fashion Company has two operating divisions: North and South. The following information was collected from its financial statements.
$$\begin{array} { l r r }
& \text { North } & { \text { South } } \
\text { Operating income } & \$ 15,375 & \$ 9,160 \
\text { Sales } & 90,100 & 128,445 \
\text { Average operating assets } & 47,620 & 37,690
\end{array}$$
Required:
Compute the following ratios for each division:
a. Profit margin
b. Asset turnover
c. Return on investment (ROI)

Question

The Calculating Fashion Company has two operating divisions: North and South. The following information was collected from its financial statements.
 $$\begin{array} { l r r } 
& \text { North } & { \text { South } } \
\text { Operating income } & \$ 15,375 & \$ 9,160 \
\text { Sales } & 90,100 & 128,445 \
\text { Average operating assets } & 47,620 & 37,690
\end{array}$$ 
Required:
Compute the following ratios for each division:
a. Profit margin
b. Asset turnover
c. Return on investment (ROI)

Quizplus · Accepted Answer

The Answer of The Calculating Fashion Company has two operating divisions: North and South. The following information was collected from its financial statements.
 $$\begin{array} { l r r } 
& \text { North } & { \text { South } } \
\text { Operating income } & \$ 15,375 & \$ 9,160 \
\text { Sales } & 90,100 & 128,445 \
\text { Average operating assets } & 47,620 & 37,690
\end{array}$$ 
Required:
Compute the following ratios for each division:
a. Profit margin
b. Asset turnover
c. Return on investment (ROI)

The Calculating Fashion Company Has Two Operating Divisions: North and South