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Two Divisions of Crowson Company (Divisions X and Y)have the Same

Question 70

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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) .Income from operations for Division X is $50,000,and income from operations for Division Y is $38,000.Division X has a higher return on investment than Division Y by


A) using income from operations as a performance measure.
B) comparing income from operations.
C) applying a negotiated price measure.
D) using its assets more efficiently in generating sales.

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