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The income from operations and the amount of invested assets in each division of Beck Industries...

The income from operations and the amount of invested assets in each division of Beck Industries are as follows:

Income from Operations Invested Assets
Retail Division $135,000 $750,000
Commercial Division 161,700 770,000
Internet Division 32,500 250,000

a. Compute the return on investment for each division. (Round to the nearest whole number.)

Division Percent
Retail Division fill in the blank 1 %
Commercial Division fill in the blank 2 %
Internet Division fill in the blank 3 %

b. Which division is the most profitable per dollar invested?

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Answer #1

Answer a.

Retail Division:

Return on Investment = Income from Operations / Invested Assets
Return on Investment = $135,000 / $750,000
Return on Investment = 18.00%

Commercial Division:

Return on Investment = Income from Operations / Invested Assets
Return on Investment = $161,700 / $770,000
Return on Investment = 21.00%

Internet Division:

Return on Investment = Income from Operations / Invested Assets
Return on Investment = $32,500 / $250,000
Return on Investment = 13.00%

Answer b.

Commercial Division is the most profitable division.

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