What are the respective return on investment ratios

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Berger Publishing has two divisions, Toronto and Vancouver, which operate autonomously. Their results for the past year were as follows:

Toronto: Sales $5,000,000,

Contribution Margin $2,500,000,

Operating Income $2,000,000,

Investment Base (total assets) $6,500,000.

Vancouver: Sales $6,000,000,

Contribution Margin $3,000,000,

Operating Income $3,500,000,

Investment Base (total assets) $7,500,000.

The company's desired rate of return is 15%.

Question 1: What are the respective return on investment ratios for the Toronto and Vancouver divisions?

Reference no: EM132517197

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