Question: Kelfour Enterprises has divided its operations into two divisions. Relevant accounting data for each division is as follows: Divisions Sales Operating Assets Operating Income Western

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

Divisions Sales Operating Assets Operating Income
Western Division $ 150,000 $ 100,000 $ 15,000
Eastern Division $ 300,000 $ 150,000 $ 16,500

A)

Based on this information

Multiple Choice

  • The Eastern Division is outperforming the Western Division because it has more operating income.

  • The Eastern Division is outperforming the Western Division because it has more operating assets.

  • The Eastern Division is outperforming the Western Division because it has more sales revenue.

  • None of the answers is correct.

B)

Based on this information Western Division's margin is

Multiple Choice

  • higher than Eastern's Margin.

  • lower than Eastern's Margin.

  • equal to Eastern's Margin.

  • The answer cannot be determined from the information provided.

C)

Based on this information Western Division's turnover is

Multiple Choice

  • higher than Eastern's turnover.

  • equal to Eastern's turnover.

  • lower than Eastern's turnover.

  • The answer cannot be determined from the information provided.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!