Final answer:
The Retail Division has an ROI of 18%, the Commercial Division has an ROI of 20%, and the Data Analytics Division has an ROI of 23%.
Step-by-step explanation:
The return on investment (ROI) for each division of Stewart Industries can be calculated using the formula ROI = (Operating Income / Invested Assets) * 100%. By applying this formula to the provided data for each division, we get:
- Retail Division: (57,600 / 320,000) * 100% = 18%
- Commercial Division: (62,000 / 310,000) * 100% = 20%
- Data Analytics Division: (174,800 / 760,000) * 100% = 23%
These percentages represent the return on investment as a whole number for each division, with Retail at 18%, Commercial at 20%, and Data Analytics at 23%.
To compute the return on investment for each division, divide the operating income by the invested assets and multiply by 100 to get a percentage. Here are the calculations:
Retail Division: Return on Investment = (Operating Income / Invested Assets) * 100 = ($57,600 / $320,000) * 100 = 18%
Commercial Division: Return on Investment = (Operating Income / Invested Assets) * 100 = ($62,000 / $310,000) * 100 = 20%
Data Analytics Division: Return on Investment = (Operating Income / Invested Assets) * 100 = ($174,800 / $760,000) * 100 = 23%