Sales Var. cost of goods sold Fixed manufacturing costs Variable selling Fixed admin. (50% allocated) Fixed selling (20% allocated) Assets at cost Accumulated depreciation P600,000 200,000 50,000 30,000 20,000 50,000 800,000 200,000 If Sorority Corporation uses ROI to evaluate division managers and uses historical cost as the investment base, the ROI for Alpha Division is: O 33.75% O 31.25% 45.00% 41.67%

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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p4-1

Sales
Var. cost of goods sold
Fixed manufacturing costs
Variable selling
Fixed admin. (50% allocated)
Fixed selling (20% allocated)
Assets at cost
Accumulated depreciation
P600,000
200,000
50,000
30,000
20,000
50,000
800,000
200,000
If Sorority Corporation uses ROI to evaluate division managers and uses historical cost as the
investment base, the ROI for Alpha Division is:
33.75%
O 31.25%
O 45.00%
O 41.67%
Transcribed Image Text:Sales Var. cost of goods sold Fixed manufacturing costs Variable selling Fixed admin. (50% allocated) Fixed selling (20% allocated) Assets at cost Accumulated depreciation P600,000 200,000 50,000 30,000 20,000 50,000 800,000 200,000 If Sorority Corporation uses ROI to evaluate division managers and uses historical cost as the investment base, the ROI for Alpha Division is: 33.75% O 31.25% O 45.00% O 41.67%
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