The BREAD House segment has currently P2,000,000 in invested capital and a controllable margin of P250,000. Which one of following projects will increase the BREAD House division’s ROI? Only the BUFFET option Only the CHICKEN option Both the BUFFET and CHICKEN options Neither the BUFFET nor the CHICKEN options

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The BREAD House segment has currently P2,000,000 in invested capital and a controllable margin of P250,000. Which one of following projects will increase the BREAD House division’s ROI?

  • Only the BUFFET option
  • Only the CHICKEN option
  • Both the BUFFET and CHICKEN options
  • Neither the BUFFET nor the CHICKEN options
The area manager of the BREAD House Restaurants is considering two possible expansion
alternatives. The required investments, expected controllable margins, and the ROls of each are
as follows:
Controllable Margin
P30,000
P50,000
Project
ROI
Investment
P120,000
P540,000
BUFFET
25%
9.25%
CHICKEN
Transcribed Image Text:The area manager of the BREAD House Restaurants is considering two possible expansion alternatives. The required investments, expected controllable margins, and the ROls of each are as follows: Controllable Margin P30,000 P50,000 Project ROI Investment P120,000 P540,000 BUFFET 25% 9.25% CHICKEN
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