Nue Wines Has the Following Data for Its Three Divisions

Essay

Nue Wines has the following data for its three divisions for the year: $$\begin{array} { | l | r | r | r | } \hline & \text { Ein } & \text { Zwei } & \text { Drei } \\\hline \text { Revenues } & \$ 12,000,000 & \$ 38,000,000 & \$ 28,000,000 \\\hline \text { Cost of sales } & 7,695,000 & 19,000,000 & 14,000,000 \\\hline \begin{array} { l } \text { Allocated } \\\text { corporate } \\\text { overhead }\end{array} & 720,000 & 2,280,000 & 2,100,000 \\\hline \begin{array} { l } \text { Other general \& } \\\text { administration }\end{array} & 1,585,000 & 11,000,000 & 11,000,000 \\\hline \begin{array} { l } \text { Return on } \\\text { Investment }\end{array} & 15 \% & 12 \% & 9 \% \\\hline\end{array}$$
Required:
a.Compute divisional operating income for each of the divisions.Assume taxes are 35%.b.Calculate the profit margin ratio for each division.c.Calculate the asset turnover for each division.