1.
:
The return on investment (ROI) of the company.
2.
Return on Investment or asset establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.
:
The new return on investment (ROI) of the company, if sales will increase by 50% and net operating income will increase by 200%, and there is no increase in average operating assets.
3.
Return on Investment establishes the relationship between the net income and the assets or capital employed. The ratio is used to measure the overall performance of an organization by looking at how efficiently an organization uses its resources.
:
The new return on investment (ROI) of the company, if sales are increased by $1,000,000, average operating assets are increased by $250,000, and net operating income is increased by $200,000.
Want to see the full answer?
Check out a sample textbook solution
Chapter 11 Solutions
MANAGERIAL ACCOUNTING
- MoonWear, Inc. offers an unconditional return policy. It normally expects 2.5% of sales at retail selling prices to be returned before the return period expires. Assuming that MoonWear records total sales of $12.5 million for the current period, what amount of net sales should it record for this period?arrow_forwardHi expert please given correct answer with accountingarrow_forwardHelp with accounting questionarrow_forward
