Return on investment for the wholesale division


Question: Keithley Inc. has two divisions that operate as investment centers. The data for each follows:

                                Wholesale       Retail
                                   Division      Division
Sales                         $ 275,500    $ 283,100
Productive Assets        2,755,000    4,275,000
Net Operating Income    606,100     1,150,000

Q1) What is the return on investment for the Wholesale Division?

A) 45.90%
B) 34.60%
C) 22.00%
D) 10.00%

Q2) What is the capital turnover for the Retail Division?

A) 15.10
B) 37.17
C) 26.90
D) 6.60

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Accounting Basics: Return on investment for the wholesale division
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