King Mattresses sells both mattress sets and bed frames. Last quarter total sales were $50,000 for mattress

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King Mattresses sells both mattress sets and bed frames. Last quarter total sales were $50,000 for mattress sets and $25,000 for bed frames. ROI was 10 percent for both divisions, while asset turnover was 5 for mattress sets and 2 for bed frames. What was the amount of operating profit for each division?


Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Cost management a strategic approach

ISBN: 978-0073526942

5th edition

Authors: Edward J. Blocher, David E. Stout, Gary Cokins

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