1.
Concept Introduction:
Return on investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:
Or
To calculate: The ROI for each division.
2.
Concept Introduction:
Return on investment (ROI):
Return on investment is a profitability ratio that represents the percentage return on the investment made. It is calculated by dividing the Net Income by the Average total assets. The formulas to calculate the ROI are as follows:
Or
To identify: The division managers who is doing the better job.

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Chapter 11 Solutions
MANAGERIAL ACCOUNTING FOR MANAGERS AC
- Calculate the number of units that Danico Industries must sell in order to realize an operating income of $225,000 when fixed costs are $540,000 and the unit contribution margin is $30. a. 25,500 units b. 25,000 units c. 24,500 units d. 26,000 unitsarrow_forwardVariable costing includes what? (a) All production costs (b) Only variable manufacturing costs (c) Only fixed costs (d) Only period costs MCQarrow_forwardCan you provide the accurate answer to this financial accounting question using correct methods?arrow_forward
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