Question: Learning World, Inc. has two divisions: Test Preparation and Language Arts. Results (in millions) for the past three years are partially displayed here: Operating Income
Learning World, Inc. has two divisions: Test Preparation and Language Arts. Results (in millions) for the past three years are partially displayed here:
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| Operating Income | Operating Revenues | Total Assets | Operating Income/Operating Revenue | Operating Revenues/Total Assets | Operating Income/Total Assets |
| Test Preparation Division
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| 2015 | 700 | 8750 | 2500 | ? | ? | ? |
| 2016 | 850 | ? | ? | 10% | ? | 40% |
| 2017 | 1120 | ? | ? | 11.2% | 4.0 | ? |
| Language Arts Division |
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| 2015 | 620 | 2480 | 1150 | ? | ? | ? |
| 2016 | ? | 3525 | 2350 | 20% | ? | ? |
| 2017 | ? | ? | 2500 | ? | 2.0 | 25% |
| Learning World Inc |
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| 2015 | 1320 | 11230 | 4050 | ? | ? | ? |
| 2016 | ? | ? | ? | ? | ? | ? |
| 2017 | ? | ? | ? | ? | ? | ? |
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Complete the table by filling in the blanks. (Round all dollar amounts to the nearest dollar, percentages to the nearest tenth percent, X.X%, and ratios to one decimal place.)
| Use the DuPont method of profitability analysis to explain changes in the operating-income-to-total-assets ratios over the 2015dash2017 period for each division and for Learning World as a whole. Comment on the results. |
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