ton Company a manufacturer of office supplies provides the f

ton Company, a manufacturer of office supplies, provides the following financial information Pen Division Pencil Division erating income Net sales Total assets at Jan. 1 Total assets at Dec. 31 $90,000 $450,00 $580 $600,0 $30,000 $150,000 $255,000 $235,000 Calculate the return on investment for the Pen Division. (Round your answer to two A) 15.25% ) 12.24% 15.52% ) 15.00%

Solution

Solution: 15.25%

Working:

Average total assets = (580,000 + 600,000)/2 = 590,000

ROI = 90,000 / 590,000 = 15.25%