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 income from its operations.
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 income from its operations.
Correct Answer:
Verified
Correct Answer:
Verified
Q11: Espinosa Corporation had $220,000 invested in assets,sales
Q12: Assume that divisional income from operations amounts
Q13: If income from operations for a division
Q14: Income from operations for Division X is
Q20: If income from operations for a division
Q53: The negotiated price approach allows the managers
Q54: Operating expenses incurred for the entire business
Q61: The ratio of sales to invested assets
Q81: It is beneficial for two related companies
Q85: The minimum amount of desired divisional income