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
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The Eastern Division is outperforming the Western Division because it has more operating income.
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The Eastern Division is outperforming the Western Division because it has more operating assets.
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The Eastern Division is outperforming the Western Division because it has more sales revenue.
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None of the answers is correct.
B)
Based on this information Western Division's margin is
Multiple Choice
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higher than Eastern's Margin.
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lower than Eastern's Margin.
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equal to Eastern's Margin.
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The answer cannot be determined from the information provided.
C)
Based on this information Western Division's turnover is
Multiple Choice
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higher than Eastern's turnover.
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equal to Eastern's turnover.
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lower than Eastern's turnover.
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The answer cannot be determined from the information provided.
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