Suppose that a division produces an operating profit of $ 500,000 with operating assets averaging $ 2 million. What is the return on the division's investment? Suppose that another division produces operating profit of $ 3 million and operating assets averaging $ 30 million. Calculate the ROI of this division. Which division operates better? Explain your answer?
Working 
Division 1 
Division 2 

A 
Operating Profits 
$500,000 
$3,000,000 
B 
Operating Assets 
$2,000,000 
$30,000,000 
C = (A/B) x 100 
Return on Investments 
25% 
10% 
Get Answers For Free
Most questions answered within 1 hours.