Austin Company
Austin Company has established a target rate of return of 15% for all divisions.For the most recent year,Waterloo Division generated sales of $12,000,000 and expenses of $9,000,000.Total assets at the beginning of the year were $7,000,000 and total assets at the end of the year were $9,000,000.
Refer to Austin Company.For the most recent year,what was Waterloo Division's return on investment?
A)18.75%
B)33.33%
C)37.50%
D)42.86%

Question

Quizplus · Accepted Answer

The Answer of Austin Company
Austin Company has established a target rate of return of 15% for all divisions.For the most recent year,Waterloo Division generated sales of $12,000,000 and expenses of $9,000,000.Total assets at the beginning of the year were $7,000,000 and total assets at the end of the year were $9,000,000.
Refer to Austin Company.For the most recent year,what was Waterloo Division's return on investment?
A)18.75%
B)33.33%
C)37.50%
D)42.86%

Austin Company Austin Company Has Established a Target Rate of Return of Return