Multiple Choice
Two divisions of Central 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 $55,000, and income from operations for Division Y is $43,000. Division X has a higher return on investment than Division Y by:
A) using income from operations as a performance measure
B) comparing the profit margins
C) applying a negotiated price measure
D) using its assets more efficiently in generating sales
Correct Answer:
Verified
Correct Answer:
Verified
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