Blossom Division's operating results include: ● Controllable margin, $323,200 Sales revenue, $2,423,000 Operating assets, $1,010,000 Blossom is considering a project with sales of $286,090, expenses of $191,000, and an investment of $370,000. Blossom's required rate of return is 15%. DOLCUL FO FOC

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Accounting - ROI

Blossom Division's operating results include:
●
●
●
Controllable margin, $323,200
Sales revenue, $2,423,000
Operating assets, $1,010,000
Blossom is considering a project with sales of $286,090, expenses of $191,000, and an investment of $370,000. Blossom's required
rate of return is 15%.
What is the ROI of the new project. (Round answer to 1 decimal place, e.g. 52.5%.)
ROI of the new project
What is the ROI if Blossom takes up the new project? (Round answer to 1 decimal place, e.g. 52.5%.)
New ROI
Blossom
%
Determine whether Blossom should accept this project.
should reject
should accept
eTextbook and Media
%
the project.
Transcribed Image Text:Blossom Division's operating results include: ● ● ● Controllable margin, $323,200 Sales revenue, $2,423,000 Operating assets, $1,010,000 Blossom is considering a project with sales of $286,090, expenses of $191,000, and an investment of $370,000. Blossom's required rate of return is 15%. What is the ROI of the new project. (Round answer to 1 decimal place, e.g. 52.5%.) ROI of the new project What is the ROI if Blossom takes up the new project? (Round answer to 1 decimal place, e.g. 52.5%.) New ROI Blossom % Determine whether Blossom should accept this project. should reject should accept eTextbook and Media % the project.
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