Cornerstones of Cost Accounting 1st Edition by Don Hansen,Maryanne Mowen

تمرين 17

CALCULATING AVERAGE OPERATING ASSETS, MARGIN, TURNOVER, RETURN ON INVESTMENT (ROI)
Chester, Inc., provided the following information for two of its divisions for last year:

Required:
1. For the Paper Products Division, calculate:
a. Average operating assets
b. Margin
c. Turnover
d. Return on investment (ROI)
2. For the Chemicals Division, calculate:
a. Average operating assets
b. Margin
c. Turnover
d. Return on investment (ROI)
3. What if operating income for the Paper Products Division was $2,000,000? How would that affect average operating assets? Margin? Turnover? ROI? Calculate any changed ratios (round to four significant digits).