Kelfour Enterprises has divided its operations into two divisions. Relevant acco

ID: 2449067 • Letter: K

Question

Kelfour Enterprises has divided its operations into two divisions. Relevant accounting data for each division is as follows:

Based on this information:

a. The Eastern Division is outperforming the Western Division because it has more operating income.

b. The Eastern Division is outperforming the Western Division because it has more operating assets.

c. The Eastern Division is outperforming the Western Division because it has more sales revenue.

d. None of the answers is correct.

Divisions Sales Operating Assets Operating Income Western Division $ 150,000 $ 100,000 $ 15,000 Eastern Division $ 300,000 $ 150,000 $ 16,500

Based on this information:

a. The Eastern Division is outperforming the Western Division because it has more operating income.

b. The Eastern Division is outperforming the Western Division because it has more operating assets.

c. The Eastern Division is outperforming the Western Division because it has more sales revenue.

d. None of the answers is correct.

ans) (C) The Eastern Division is outperforming the Western Division because it has more sales revenue.

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