Two Divisions of Crowson Company (Divisions X and Y) Have

Multiple Choice

Two divisions of Crowson Company (Divisions X and Y) have the same profit margins.Division X's investment turnover is larger than that of Division Y (1.2 to 1.0) .Which of the following statements is true?

A) Division Y will have a higher return on investment as it is using its assets more efficiently in generating sales.
B) Division X will have a higher return on investment as it is generating more operating income.
C) Division X will have a higher return on investment as it is using its assets more efficiently in generating sales.
D) Division Y will have a higher return on investment as it is generating more operating income.