Alpha Company would like to examine the sales margin and assetturnover components of return on...

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Accounting

Alpha Company would like to examine the sales margin and assetturnover components of return on investment for three of itsdivisions and has accordingly prepared the following;
Division Investment Division OperatingIncome Sales
E 575,000 75,000 500,000
F 700,000 91,000 542,000
G 1,000,000 176,000 763,000
a. Compute each division's return on investment, salesmargin, and asset turnover
b. COmment on the division's relative rankings on theratios computed in (a).

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