Question: SkyBound Airlines provided the following information about its two operating divisions: Passenger Cargo Operating profit $ 4 0 , 0 0 0 $ 5 0

SkyBound Airlines provided the following information about its two operating divisions:
Passenger
Cargo
Operating profit
$40,000
$50,000
Investment
$250,000
$500,000
External borrowing rate
6%
8%
Measuring performance using return on investment (ROI), which division performed better?
The Passenger division, with an ROI of 22%.
The Passenger division, with an ROI of 16%.
The Cargo division, with an ROI of 10%.
The Cargo division, with an ROI of 18%.

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