Sea Cruise Equipment Company has several divisions that are investment centers.Data for the Boat Division and the Trailer Division are shown here:
With regard to the efficient use of assets,the Boat Division has a higher return on investment (ROI)because it has the highest operating income.

Question

Sea Cruise Equipment Company has several divisions that are investment centers.Data for the Boat Division and the Trailer Division are shown here:
  With regard to the efficient use of assets,the Boat Division has a higher return on investment (ROI)because it has the highest operating income.

Quizplus · Accepted Answer

Calculation of ROI:
 11eb0def_78a1_17cd_9431_698cd5669fbf_TB6702_00 *Boat division: [(692,000 + 700,000) / 2] = 696,000
Trailer division: [(233,000 + 218,000) / 2] = 225,500

Sea Cruise Equipment Company Has Several Divisions That Are Investment