Lucas is the X Division manager and his performance is evaluated by executive management based on Division ROI. The current controllable margin for X Division is P46,000. Its current operating assets total P210,000. The division is considering purchasing equipment for P40,000 that will increase sales by an estimated P10,000, with annual depreciation of P10,000. If the equipment is purchased, what is the new ROI (round-off the final answer to one decimal places)? * C
Lucas is the X Division manager and his performance is evaluated by executive management based on Division ROI. The current controllable margin for X Division is P46,000. Its current operating assets total P210,000. The division is considering purchasing equipment for P40,000 that will increase sales by an estimated P10,000, with annual depreciation of P10,000. If the equipment is purchased, what is the new ROI (round-off the final answer to one decimal places)? * C
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Lucas is the X Division manager and his performance is evaluated by executive management
based on Division ROI. The current controllable margin for X Division is P46,000. Its current
operating assets total P210,000. The division is considering purchasing equipment for P40,000
that will increase sales by an estimated P10,000, with annual depreciation of P10,000. If the
equipment is purchased, what is the new ROI (round-off the final answer to one decimal
places)? * .
Sample format: 11.1%
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