Question - Selected operating data on the two divisions of York Company are given below:
Division
Eastern Western
Sales $1,000,000 $1,750,000
Average operating assets $500,000 $500,000
Net operating income $90,000 $105,000
Property, plant, and equipment $250,000 $200,000
Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover.