Fanning Company calculated its return on investment as 10 percent. Sales are now $350,000, and the amount of total operating assets is $370,000. Required a. If expenses are reduced by $25,900 and sales remain unchanged, what return on investment will result? Note: Round your percentage answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45). b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. a. Return on investment b. Operating assets must % by
Fanning Company calculated its return on investment as 10 percent. Sales are now $350,000, and the amount of total operating assets is $370,000. Required a. If expenses are reduced by $25,900 and sales remain unchanged, what return on investment will result? Note: Round your percentage answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45). b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. a. Return on investment b. Operating assets must % by
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
AM. 119.
Transcribed Image Text:Fanning Company calculated its return on investment as 10 percent. Sales are now $350,000, and the amount of total operating
assets is $370,000.
Required
a. If expenses are reduced by $25,900 and sales remain unchanged, what return on investment will result?
Note: Round your percentage answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45).
b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the
same result?
Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount.
a. Return on investment
b. Operating assets must
%
by
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education