Question: Both the e-Learning division and the Tablet Computer Division are investment centers for Smart Touch Learning. Below is information for both divisions for the month

Both the e-Learning division and the Tablet Computer Division are investment centers for Smart Touch Learning. Below is information for both divisions for the month of October:

e-Learning Division Tablet Computer Division

Sales revenue $7,500,000 $5,243,600

Variable expenses $5,225,000 $3,985,000

Contribution margin $2,275,000 $1,258,600

Fixed expenses $1,825,000 $282,800

Operating income $450,000 $975,800

Did the tablet division's ROI meet its target rate of return?

Multiple Choice

  • Yes

  • No

  • The ROI equaled its target rate of return.

  • Insufficient information to determine the answer

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