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The Southern Division of Kenmost Company Had Operating Income of $50,000

Question 131

Essay

The Southern Division of Kenmost Company had operating income of $50,000, average assets of $350,000, and sales of $250,000. The minimum rate of return for Kenmost Company is 12%.
Required:
A. Calculate the margin for the Southern Division.
B. Calculate the turnover for the Southern Division.
C. Calculate the ROI for the Southern Division.
D. Calculate the residual income for the Southern Division.

Correct Answer:

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A. Margin = $50,000/$250,000 =...

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