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The Following Information Pertains to the Three Divisions of Merrymount

Question 60

Multiple Choice

The following information pertains to the three divisions of Merrymount Company:  Division X Division Y Division Z Sales ??1,250,000 Net operating income $36,000$25,000$7,000 Average operating assets 300,000?? Retum on investment ?20%15% Margin 0.100.05? Turnover 1.5?? Target ROI 15%12%10%\begin{array}{lrrr}&\text { Division } X& \text { Division } Y& \text { Division } Z\\\text { Sales } & ? & ? & 1,250,000 \\\text { Net operating income } & \$ 36,000 & \$ 25,000 & \$ 7,000 \\\text { Average operating assets } & 300,000 & ? & ? \\\text { Retum on investment } & ? & 20 \% & 15 \% \\\text { Margin } & 0.10 & 0.05 & ? \\\text { Turnover } & 1.5 & ? & ? \\\text { Target ROI } & 15 \% & 12 \% & 10 \%\end{array} What are the average operating assets for Division Y?


A) $25,000
B) $208,333
C) $5,000
D) $125,000

Correct Answer:

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