Question

The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31:

	Rails Division	Locomotive Division	Corporate Total
Cost of goods sold	$47,500	$30,700
Direct operating expenses	27,700	20,300
Sales	98,900	67,900
Interest expense			$2,700
General overhead			19,900
Income tax			4,300

The income from operations for the Rails Division is

2- The profit margin for Division C is 11.2%, and the investment turnover is 1.6. What is the return on investment for Division C? Round the percentage to two decimal places.

Answer 1