A company is considering opening a new store location. Information for two different potential locations follows. The company can only open one new location. Location 1 2 Investment in Average Assets $ 12,200,000 5,720,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Location 1 Location 2 Expected Annual Income $ 1,165,100 946, 660 Compute the expected return on investment (ROI) for Location 1 and for Location 2. Note: Round your ROI computations to 2 decimal places. Numerator Return on Investment 1 Denominator < Required 1 = Required 2 > ROI ROI

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter11: Differential Analysis And Product Pricing
Section: Chapter Questions
Problem 1PA: Differential analysis involving opportunity costs On August 1, Rantoul Stores Inc. is considering...
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A company is considering opening a new store location. Information for two different potential locations follows.
The company can only open one new location.
Location
1
2
Investment in
Average Assets
$ 12,200,000
5,720,000
Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Location 1
Location 2
Expected Annual
Income
$ 1,165,100
946, 660
Compute the expected return on investment (ROI) for Location 1 and for Location 2.
Note: Round your ROI computations to 2 decimal places.
Numerator
Return on Investment
Denominator
< Required 1
=
Required 2 >
ROI
ROI
Transcribed Image Text:A company is considering opening a new store location. Information for two different potential locations follows. The company can only open one new location. Location 1 2 Investment in Average Assets $ 12,200,000 5,720,000 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Location 1 Location 2 Expected Annual Income $ 1,165,100 946, 660 Compute the expected return on investment (ROI) for Location 1 and for Location 2. Note: Round your ROI computations to 2 decimal places. Numerator Return on Investment Denominator < Required 1 = Required 2 > ROI ROI
A company is considering opening a new store location. Information for two different potential locations follows.
The company can only open one new location.
Location
1
2
Investment in
Average Assets
$ 12,200,000
5,720,000
Expected Annual
Required 1 Required 2
Income
$ 1,165,100
946, 660
Complete this question by entering your answers in the tabs below.
Based on return on investment, should the company open Location 1 or Location 2?
Based on return on investment, should the company open Location 1 or Location 2?
< Required 1
Required 2 >
Transcribed Image Text:A company is considering opening a new store location. Information for two different potential locations follows. The company can only open one new location. Location 1 2 Investment in Average Assets $ 12,200,000 5,720,000 Expected Annual Required 1 Required 2 Income $ 1,165,100 946, 660 Complete this question by entering your answers in the tabs below. Based on return on investment, should the company open Location 1 or Location 2? Based on return on investment, should the company open Location 1 or Location 2? < Required 1 Required 2 >
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