QS 22-9 Computing return on investment LO A1Compute return on investment for each of the divisions below (each is an investment center). Which division performed the best, based on return on investment? **Title: Computing Return on Investment (ROI) for Investment Centers****Learning Objective: Understanding ROI Calculation****Question:**Compute the return on investment (ROI) for each division listed below. Each division functions as an investment center. Determine which division performed the best by analyzing the ROI.---**Instructions:**Complete this exercise by entering your calculations in the provided tabs.**Tabs Available:**- Return on Investment- Performance Based on ROI---**Task:**Calculate the return on investment for each division below. Please round your final answer to one decimal place.**Investment Centers Data Table:**| Investment Center | Net Income | Average Assets | Return on Investment ||----------------------------------|------------|----------------|----------------------|| Cameras and camcorders | $4,500,000 | $20,000,000 | || Phones and communications | $1,500,000 | $12,500,000 | || Computers and accessories | $800,000 | $10,000,000 | |**Instructions for Calculation:**1. Use the formula for ROI: \[ \text{ROI} = \left( \frac{\text{Net Income}}{\text{Average Assets}} \right) \times 100 \]2. Compute the ROI for each division by inserting their net income and average assets into the formula provided.**Navigational Instructions:**- Click on the "Return on Investment" tab to input your ROI calculations.- After completing your entries, proceed to the "Performance Based on ROI" tab to evaluate which division has the highest ROI.Return your results with precision, and make sure to round your final ROI answers to one decimal place.Understanding ROI is essential for evaluating the profitability of investment centers within a company, guiding strategic decisions, and allocating resources efficiently.

Return on Investment = Net Income / Average Assets

Compute return on investment for each of the divisions below (each is an investment center). Which division performed the best, based on return on investment? Complete this question by entering your answers in the tabs below. Performance Based on ROI Return on Investment Compute return on investment for each of the divisions below (each is an investment center). (Round your final answer to 1 decimal place.) Return on Investment Center Net Income Average Assets Investment Cameras and camcorders 2$ 4,500,000 $ 20,000,000 % Phones and communications 1,500,000 12,500,000 % Computers and accessories 800,000 10,000,000 %

Compute return on investment for each of the divisions below (each is an investment center). Which division performed the best, based on return on investment? Complete this question by entering your answers in the tabs below. Performance Based on ROI Return on Investment Compute return on investment for each of the divisions below (each is an investment center). (Round your final answer to 1 decimal place.) Return on Investment Center Net Income Average Assets Investment Cameras and camcorders 2$ 4,500,000 $ 20,000,000 % Phones and communications 1,500,000 12,500,000 % Computers and accessories 800,000 10,000,000 %

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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QS 22-9 Computing return on investment LO A1

Compute return on investment for each of the divisions below (each is an investment center). Which division performed the best, based on return on investment?

**Title: Computing Return on Investment (ROI) for Investment Centers**

**Learning Objective: Understanding ROI Calculation**

**Question:**
Compute the return on investment (ROI) for each division listed below. Each division functions as an investment center. Determine which division performed the best by analyzing the ROI.

---

**Instructions:**
Complete this exercise by entering your calculations in the provided tabs.

**Tabs Available:**
- Return on Investment
- Performance Based on ROI

---

**Task:**
Calculate the return on investment for each division below. Please round your final answer to one decimal place.

**Investment Centers Data Table:**

| Investment Center | Net Income | Average Assets | Return on Investment |
|----------------------------------|------------|----------------|----------------------|
| Cameras and camcorders | $4,500,000 | $20,000,000 | |
| Phones and communications | $1,500,000 | $12,500,000 | |
| Computers and accessories | $800,000 | $10,000,000 | |

**Instructions for Calculation:**

1. Use the formula for ROI:
\[
\text{ROI} = \left( \frac{\text{Net Income}}{\text{Average Assets}} \right) \times 100
\]

2. Compute the ROI for each division by inserting their net income and average assets into the formula provided.

**Navigational Instructions:**

- Click on the "Return on Investment" tab to input your ROI calculations.
- After completing your entries, proceed to the "Performance Based on ROI" tab to evaluate which division has the highest ROI.

Return your results with precision, and make sure to round your final ROI answers to one decimal place.

Understanding ROI is essential for evaluating the profitability of investment centers within a company, guiding strategic decisions, and allocating resources efficiently.

Formula Formula ROI (%) = Net Income Principal Amount × 100

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