South Carolina Produce has two decentralized divisions (Peaches and Onions) that have decision making responsibility...
70.2K
Verified Solution
Link Copied!
Question
Accounting
South Carolina Produce has two decentralized divisions (Peaches and Onions) that have decision making responsibility over the amount of resources invested in their divisions. Recent financial extracts for both divisions are presented below:
Peaches Onions
Fixed assets, gross $4,500 $7,200
Accumulated depreciation $2,700 $2,160
Other assets$900 $1,350
Sales $12,150 $12,960
Net income after tax* $1,330 $1,810
Average age of fixed assets (years) 15 5
*Net income is after tax but before interest
What is the Return on Investment (ROI) for each division?
Based on the DuPont model covered in our lecture, what are two possible strategies for improving the Return on Investment (ROI)?
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
