Retail Sales and Wholesale Sales are the only divisions of Terra Company. The following information was gathered for the two divisions for the current year: The company has $1,200,000 in operating assets that are not assigned to either of the divisions and $500,000 in corporate expenses that are not reflected in the information above. Based on this information, what is the ROI for the company as a whole?
$$\begin{array} { | l | l | l r | }
\hline & { \text { Retail Division } } & { \text { Wholesale Division } } \
\hline \text { Operating income } & \$ 2,500,000 & \$ 6,000,000 \
\hline \text { Operating assets } & \$ 16,000,000 & \$ 36,000,000 \
\hline
\end{array}$$

Question

Retail Sales and Wholesale Sales are the only divisions of Terra Company. The following information was gathered for the two divisions for the current year: The company has $1,200,000 in operating assets that are not assigned to either of the divisions and $500,000 in corporate expenses that are not reflected in the information above. Based on this information, what is the ROI for the company as a whole?
$$\begin{array} { | l | l  | l r | } 
\hline &  { \text { Retail Division } } &  { \text { Wholesale Division } } \
\hline \text { Operating income } & \$  2,500,000 & \$  6,000,000 \
\hline \text { Operating assets } & \$  16,000,000 & \$  36,000,000 \
\hline
\end{array}$$

Quizplus · Accepted Answer

The Answer of Retail Sales and Wholesale Sales are the only divisions of Terra Company. The following information was gathered for the two divisions for the current year: The company has $1,200,000 in operating assets that are not assigned to either of the divisions and $500,000 in corporate expenses that are not reflected in the information above. Based on this information, what is the ROI for the company as a whole?
$$\begin{array} { | l | l  | l r | } 
\hline &  { \text { Retail Division } } &  { \text { Wholesale Division } } \
\hline \text { Operating income } & \$  2,500,000 & \$  6,000,000 \
\hline \text { Operating assets } & \$  16,000,000 & \$  36,000,000 \
\hline
\end{array}$$

Retail Sales and Wholesale Sales Are the Only Divisions of Terra