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The Following Information Pertains to the Three Divisions of Marlow

Question 102

Multiple Choice

The following information pertains to the three divisions of Marlow Company:  DivisionX Division Y Division Z  Sales ??1,250,000 Net operating income $36,000$25,000$75,000 Average operating assets 300,000?? Return on investment ?20%15% Margin 0.100.05? Turnover 1.5?? Target ROI 15%12%10%\begin{array}{lrrr}& \underline{\text { Division} X} & \underline{\text { Division } Y} & \underline{ \text { Division Z }}\\\text { Sales } & ? & ? & 1,250,000 \\\text { Net operating income } & \$ 36,000 & \$ 25,000 & \$ 75,000 \\\text { Average operating assets } & 300,000 & ? & ? \\\text { Return on investment } & ? & 20 \% & 15 \% \\\text { Margin } & 0.10 & 0.05 & ? \\\text { Turnover } & 1.5 & ? & ? \\\text { Target ROI } & 15 \% & 12 \% & 10 \%\end{array} What is the margin for Division Z?


A) 1.5%
B) 6.0%
C) 15.0%
D) 100.0%

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