The following information relates to last year's operations at the Dairy Division of Carrefour Bahrain: Minimum required rate of return Return on investment (ROI) Sales Turnover (on operating assets) 11% 14

Accounting Jan 19, 2021

The following information relates to last year's operations at the Dairy Division of Carrefour Bahrain: Minimum required rate of return Return on investment (ROI) Sales Turnover (on operating assets) 11% 14.4% $ 970,000 6 times What was the Dairy Division's net operating income last year? $139,680 $106.700 $32.980 $23.280

Expert Solution

1) Turnover = sales / average operating assets

6 = $ 9,70,000 / avg operating assets

Avg operating assets = $9,70,000 / 6 = $ 161,667

2) return on investment = net operating income / average operating assets

14.4 % = net operating income / $161,667

Net operating income = 161,667 * 14.4%

= 23280.048

Net operating income = 23280

Answer option - ( D) $23280

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