Solution-What was the service department roi for the year

What was the service department roi for the year

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Reference no: EM132808906

The Rhodes Company has two operating divisions. The company evaluates the performance of its divisions using the return on investment (ROI) measure. The following is information for the Service Division at the end of the year.

Service Division

Units repaired 8,000
Level of investment $400,000

Operating Expenses:

Direct Materials $40,000
Direct Labor $200,000
Overhead $25,000
Selling & Admin $15,000
Total Operating Expenses $280,000

Problem 1: The average service fee was $50 per unit. What was the Service Department's ROI for the year? (round to the nearest whole percent)

Reference no: EM132808906

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What was the service department roi for the year

Reference no: EM132808906

Reference no: EM132808906

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