Division A at Smith Co. produces four different products. There are no interrelationships between the products, and the assets used to manufacture each product could be sold for their net book values. Data for the coming year are as follows: Product A Product B Product C Product D Income $307,500 $85,500 $367,500 $153,000 Assets 1,420,000 915,000 2,475,000 1,200,000 If the Division A manager decides to dispose of product B by selling the assets and returning the cash proceeds on sale of the assets to the company, what would be the resulting overall divisional ROI?

Answer rating: 100% (QA)

To calculate the resulting overall divisional ROI after disposing of product B we first need to calc... View the full answer