MANAGERIAL ACCT(LL)+CONNECT+PROCTORIO PL
MANAGERIAL ACCT(LL)+CONNECT+PROCTORIO PL
17th Edition
ISBN: 9781265574826
Author: Garrison
Publisher: MCG
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Chapter 11, Problem 8E

1

To determine

Concept introduction:

Return on investment:

The Return on Investment is also called ROI. The return means the profit you make as a result of your investments. Return on Investment is a performance measure used to evaluate the profitability or efficiency of an investments or compare the efficiency of a number of investments. ROI is generally defined as the ratio of net profit over the total cost of the investment. ROI is calculated by dividing the net income by the total cost of the investment.

To compute:

The margin, turnover and return on investment for each division.

2

To determine

Concept introduction:

Return on investment:

The Return on Investment is also called ROI. The return means the profit you make as a result of your investments. Return on Investment is a performance measure used to evaluate the profitability or efficiency of an investments or compare the efficiency of a number of investments. ROI is generally defined as the ratio of net profit over the total cost of the investment. ROI is calculated by dividing the net income by the total cost of the investment.

Which divisional manager seems to be doing the better job? Why?

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imend using this measure in Ariel's balanced scorecard? Would it be beneficial to attempt to measure each office's individual performance with respect 4. to the scorecard measures that you created? Why or why not? EXERCISE 11-8 Computing and Interpreting Return on Investment (ROI) LO11-1 Selected operating data for two divisions of Outback Brewing, Ltd.., of Australia are given below- Division New South Wales Queensland $7,000,000 $2,000,000 $420,000 $800,000 $4,000,000 $2,000,000 $360,000 $950,000 Sales.... Average operating assets Net operating income Property, plant, and equipment (net) Required: Compute the rate of return for each division using the return on investment (ROI) formula stated in terms of margin and turnover. 2. 1. Which divisional manager seems to be doing the better job? Why? EXERCISE 11-9 Return on Investment (ROL and Do
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