Department A shows an annual after-tax profit of $400,000 from invested assets of $12 million.Department B shows an annual after-tax profit of $400,000 from invested assets of $8 million.Which unit had the best financial performance?

Question

Quizplus · Accepted Answer

Department B had a higher rate of return on its invested assets, with a profit of $50 for every $1,000 invested compared to Department A's profit of $33.33 for every $1,000 invested. Therefore, Department B had a better financial performance.

Department a Shows an Annual After-Tax Profit of $400,000 from Invested