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Queen Company Has Two Divisions, the Domestic Division and the International

Question 61

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Queen Company has two divisions, the Domestic Division and the International Division. Last year, the Domestic Division earned operating income of $360,000 using average operating assets of $1,440,000. Sales for the Domestic Division were $3,600,000. Last year, the International Division earned operating income of $560,000 using average operating assets of $2,800,000. Sales for the International Division were $7,000,000.
Required:
A. For the Domestic Division, the margin was __________________, the turnover was __________________, and the ROI was __________________.
B. For the International Division, the margin was __________________, the turnover was __________________, and the ROI was __________________.
C. If these were the only two divisions of Queen Company, what was the ROI for Queen Company?

Correct Answer:

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A. Margin = $360,000/$3,600,000 = 0.1 or...

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