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Case 1: ROI You are comparing the performance of two (2) separate divisions, segments A and B, using ROI Analysis.   A B Sales P100,000.00 P500,000.00 Operating Expenses 30,000.00 300,000.00 Net Operating income 70,000.00 200,000.00 Average Operating Assets 10,000.00 40,000.00 Required: Using ROI Analysis, which segment is performing better? To answer this question, you need to: Compute the ROI of each segment and Compute the components of ROI of each segment

Case 1: ROI You are comparing the performance of two (2) separate divisions, segments A and B, using ROI Analysis.   A B Sales P100,000.00 P500,000.00 Operating Expenses 30,000.00 300,000.00 Net Operating income 70,000.00 200,000.00 Average Operating Assets 10,000.00 40,000.00 Required: Using ROI Analysis, which segment is performing better? To answer this question, you need to: Compute the ROI of each segment and Compute the components of ROI of each segment

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Case 1: ROI

You are comparing the performance of two (2) separate divisions, segments A and B, using ROI Analysis.

 

A

B

Sales

P100,000.00

P500,000.00

Operating Expenses

30,000.00

300,000.00

Net Operating income

70,000.00

200,000.00

Average Operating Assets

10,000.00

40,000.00

Required: Using ROI Analysis, which segment is performing better?

To answer this question, you need to:

  • Compute the ROI of each segment and
  • Compute the components of ROI of each segment
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