Exhibit 11-4
The following information is for two divisions at Wiley Company.
$\begin{array}{lcc}&\text { Couch Division }&\text { Chair Division }\\hline
\text { Sales } & ? & \$ 6,000,000 \
\text { Operating income } & ? & \$ 560,000 \
\text { Operating profit margin } & 11.0 \% & ? \
\text { Average operating assets } & \$ 1,250,000 & \$ 4,000,000 \
\text { Asset turnover } & 2.0 & ? \
\text { ROI } & ? & ?
\end{array}$
-Refer to Exhibit 11-4.What is the ROI for the Chair Division (rounded to the nearest tenth of a percent)?
A)66.7%
B)14.0%
C)33.3%
D)9.3%
E)None of the answer choices is correct.

Question

Exhibit 11-4
The following information is for two divisions at Wiley Company.
 $\begin{array}{lcc}&\text { Couch Division }&\text { Chair Division }\\hline
\text { Sales } & ? & \$ 6,000,000 \
\text { Operating income } & ? & \$ 560,000 \
\text { Operating profit margin } & 11.0 \% & ? \
\text { Average operating assets } & \$ 1,250,000 & \$ 4,000,000 \
\text { Asset turnover } & 2.0 & ? \
\text { ROI } & ? & ?
\end{array}$
-Refer to Exhibit 11-4.What is the ROI for the Chair Division (rounded to the nearest tenth of a percent)?
A)66.7%
B)14.0%
C)33.3%
D)9.3%
E)None of the answer choices is correct.

Quizplus · Accepted Answer

ROI (Return on Investment) for the Chair Division is calculated as Operating Income divided by Average Operating Assets. Given Operating Income is $560,000 and Average Operating Assets are $4,000,000, ROI = ($560,000 / $4,000,000) * 100 = 14.0%.

Exhibit 11-4 the Following Information Is for Two Divisions at Wiley

Exhibit 11-4
the Following Information Is for Two Divisions at Wiley