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Computation of Earnings per share at the given net income
Wollen Inc., evaluates its divisions as investment centres. The sales, income, and assets of its three divisions follow. Calculate return on investment for each division. Which division is best?
PARTICULARS
DIVISION A
DIVISION B
DIVISION C
Sales
$800,000
Profit
$100,000
$157,000
$200,000
Assets
$600,000
$7,900,000
$4,000,000
Calculate the return on investment using the Du Pont method. What is revealed?
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