MANAGERIAL ACCOUNTING W/CONNECT
MANAGERIAL ACCOUNTING W/CONNECT
15th Edition
ISBN: 9781259732454
Author: Garrison
Publisher: MCGRAW-HILL CUSTOM PUBLISHING
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Chapter 13, Problem 15F15
To determine

Simple rate of return:

It refers to the rate by which the companies’ estimates that how much an organisation can expect to make off of a capital investment each year. By computing this, the company can quickly recognize that the plan is worth its time and money or not. It is computed by the following formula:

  Simple rate of return=Average Accounting ProfitsAverage Investment

Simple rate of return when variable expenses changed to 45%.

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MANAGERIAL ACCOUNTING W/CONNECT

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