Jumping Joes is a manufacturing company that has two major divisions. Both divisions have required a significant investment, and management wants to compare their performance. Below is information related to the two divisions.
Division A:
Sales: $80,000,000
Expenses: $70,000,000
Asset investment: $150,000,000
Division B:
Sales: $50,000,000
Expenses: $40,000,000
Asset investment: $150,000,000
Management is confused that the ROI seems to be the same for both divisions, and wants a deeper evaluation.
Which division generates greater profitability per sales dollar?
Correct Answer:
Verified
Operating Income: $80,000,000...
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