Kelfour Enterprises has divided its operations into two divisions. Relevant accounting data for each division is as

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Kelfour Enterprises has divided its operations into two divisions. Relevant accounting data for each division is as follows:
Divisions Sales Operating Assets Operating Income Westem Division Eastem Division $ 15,000 S 150,000 $ 100,000 S 300,000

Based on this information
a. The Eastern Division is outperforming the Western Division because it has more operating income.
b. The Eastern Division is outperforming the Western Division because it has more operating assets.
c. The Eastern Division is outperforming the Western Division because it has more sales revenue.
d. None of the answers is correct.

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Managerial accounting

ISBN: 978-0471467854

1st edition

Authors: ramji balakrishnan, k. s i varamakrishnan, Geoffrey b. sprin

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