Response to the following problem:
The income from operations and the amount of invested assets in each division of Devon Industries are as follows:
|
|
Income from Operations
|
Invested Assets
|
|
Sporting Goods Division
|
$80,000
|
$400,000
|
|
Health Care Division
|
41,600
|
260,000
|
|
Commercial Division
|
70,400
|
320,000
|
(a) Compute the rate of return on investment for each division.
(b) Which division is the most profitable per dollarinvested?