Cornerstones of Cost Management 2nd Edition by Don Hansen ,Maryanne Mowen

تمرين 19

Calculating Average Operating Assets, Margin, Turnover, Return on Investment (ROI)
Forchen, Inc., provided the following information for two of its divisions for last year:

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