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Compute the rate of return for each division

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Reference no: EM131818820

Question - Selected operating data on the two divisions of York Company are given below:

Division

Eastern Western

Sales $1,000,000 $1,750,000

Average operating assets $500,000 $500,000

Net operating income $90,000 $105,000

Property, plant, and equipment $250,000 $200,000

Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover.

Reference no: EM131818820

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