Answer:
A.)
Retail division = 21.95%
Commercial division = 19%
Internet division = 26%
B.) INTERNET DIVISION HAS THE HAS THE HIGHEST RETURN ON INVESTMENT.
Explanation:
- - - - - - - - - - - - operating - - - - - - invested
Retail - - - - - - - 180,000 - - - - - - - 820,000
Commercial - - 81,700 - - - - - - - - 430,000
Internet - - - - - 83,200 - - - - - - - - 320,000
A.)
return on investment ;
Operating income ÷ invested asset
Retail division (180,000 ÷ 820,000) × 100 = 21.95%
Commercial division (81700 ÷ 430000) × 100 = 19%
Internet division (83200 ÷ 320000) × 100 = 26%
B.) Interest division has the most residual income.