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USProducts Operates Two Divisions with the Following Sales and Expense

Question 1

Multiple Choice

U.S.Products operates two divisions with the following sales and expense information for the month of May: North Division: Sales $240,000; Operating income $72,000, Operating assets $600,000.
South Division: Sales $160,000; Operating income $80,000, Operating assets $800,000.
U.S.Products expects a minimum return of 10% should be earned from all investments.
North Division's return on investment for May is:


A) 10%.
B) 12%.
C) 20%.
D) 30%.

Correct Answer:

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