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Division C $1,345,000 $82,000 The following information pertains to the three divisions of Yang Limited: Division A Division
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Answer #1

8)Division C:

Return on investment =Net operating Income /Average operating asset

     .20 = 82000 / Average operating asset

    Average operating asset = 82000 / .20

                               = $ 410000

Correct option is "B"-410000

9)

Return on investment =Net operating Income /Average operating asset

     .15 = 18000 / Average operating asset

    Average operating asset = 18000 /.15

                                     = 120000

Correct option is "B"-120000

   

**There is mistake for division B in net operating income .It is $18000 and not 418000

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