Answer:
1. 13.8% and 14.6%
2. 13.6% and 16.5%
3. 1.01 times and 0.88 times
Explanation:
The computations are shown below:
1. Return on investment = Operating Income ÷ Average invested Assets
where, average invested assets would be
= (Invested assets, beginning + Invested assets, ending) ÷ 2
For Beverage Division, it would be
= $366 ÷ {($2,696 + $2,610) ÷ 2}
= $366 ÷ $2,653
= 13.8%
For Cheese Division, it would be
= $651 ÷ {($4,489 + $4,417) ÷ 2}
= $651 ÷ $4,453
= 14.6%
2. Profit margin = (Operating income ÷ sales) × 100
For Beverage Division, it would be
= ($366 ÷ $2,698) × 100
= 13.6%
For Cheese Division, it would be
= ($651 ÷ $3,942) × 100
= 16.5%
3. Investment turnover = Sales ÷ Average Operating Assets
For Beverage Division, it would be
= $2,698 ÷ {($2,696 + $2,610) ÷ 2}
= $2,698 ÷ $2,653
= 1.01 times
For Cheese Division, it would be
= $3,942 ÷ {($4,489 + $4,417) ÷ 2}
= $3,942 ÷ $4,453
= 0.88 times