Multiple Choice
The top management at Munchie Company, a manufacturer of computer games, is attempting to recover from a flood that destroyed some of their accounting records. The main computer system was also severely damaged. The following information was salvaged:
Alpha Division Beta Division Gamma Division
Sales $2,500,000 (a) $1,150,000
Net operating income $1,500,000 $650,000 $ 575,000
Operating assets (b) (c) $ 766,667
Return on investment 0.25 0.15 (d)
Return on sales (e) 0.10 0.5
Investment turnover (f) (g) 1.5
What were the sales for the Beta Division?
a. $4,333,333
b. $5,952,380
c. $6,500,000
d. $7,151,800
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