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: R O I = N e t I n c o m e A v e r a g e t o t a l a s s e t s R O I ( E x p a n d e d ) = N e t I n c o m e S a l e s × S a l e s A v e r a g e t o t a l a s s e t s Or R O I = P r o f i t M a r g i n R a t i o × A s s e t T u r n o v e r r a t i o To determine: The return on investment for each investment center

Question

Want to see the full answer?

Answer 1

Question

Chapter 24, Problem 10QS

To determine

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:

$\begin{array}{l} R O I = \frac{N e t I n c o m e}{A v e r a g e t o t a l a s s e t s} \\ R O I (E x p a n d e d) = \frac{N e t I n c o m e}{S a l e s} \times \frac{S a l e s}{A v e r a g e t o t a l a s s e t s} \end{array}$

Or

$R O I = P r o f i t M a r g i n R a t i o \times A s s e t T u r n o v e r r a t i o$

To determine: The return on investment for each investment center

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Please explain the solution to this general accounting problem using the correct accounting principles.

Can you solve this general accounting problem using accurate calculation methods?

I am searching for the correct answer to this financial accounting problem with proper accounting rules.

Answer 2

Question

Chapter 24, Problem 10QS

To determine

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:

$\begin{array}{l} R O I = \frac{N e t I n c o m e}{A v e r a g e t o t a l a s s e t s} \\ R O I (E x p a n d e d) = \frac{N e t I n c o m e}{S a l e s} \times \frac{S a l e s}{A v e r a g e t o t a l a s s e t s} \end{array}$

Or

$R O I = P r o f i t M a r g i n R a t i o \times A s s e t T u r n o v e r r a t i o$

To determine: The return on investment for each investment center

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 24, Problem 10QS

To determine

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:

$\begin{array}{l} R O I = \frac{N e t I n c o m e}{A v e r a g e t o t a l a s s e t s} \\ R O I (E x p a n d e d) = \frac{N e t I n c o m e}{S a l e s} \times \frac{S a l e s}{A v e r a g e t o t a l a s s e t s} \end{array}$

Or

$R O I = P r o f i t M a r g i n R a t i o \times A s s e t T u r n o v e r r a t i o$

To determine: The return on investment for each investment center

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 24, Problem 10QS

To determine

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:

$\begin{array}{l} R O I = \frac{N e t I n c o m e}{A v e r a g e t o t a l a s s e t s} \\ R O I (E x p a n d e d) = \frac{N e t I n c o m e}{S a l e s} \times \frac{S a l e s}{A v e r a g e t o t a l a s s e t s} \end{array}$

Or

$R O I = P r o f i t M a r g i n R a t i o \times A s s e t T u r n o v e r r a t i o$

To determine: The return on investment for each investment center

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 24, Problem 10QS

To determine

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:

$\begin{array}{l} R O I = \frac{N e t I n c o m e}{A v e r a g e t o t a l a s s e t s} \\ R O I (E x p a n d e d) = \frac{N e t I n c o m e}{S a l e s} \times \frac{S a l e s}{A v e r a g e t o t a l a s s e t s} \end{array}$

Or

$R O I = P r o f i t M a r g i n R a t i o \times A s s e t T u r n o v e r r a t i o$

To determine: The return on investment for each investment center

Answer 6

Chapter 24, Problem 10QS

To determine

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:

$\begin{array}{l} R O I = \frac{N e t I n c o m e}{A v e r a g e t o t a l a s s e t s} \\ R O I (E x p a n d e d) = \frac{N e t I n c o m e}{S a l e s} \times \frac{S a l e s}{A v e r a g e t o t a l a s s e t s} \end{array}$

Or

$R O I = P r o f i t M a r g i n R a t i o \times A s s e t T u r n o v e r r a t i o$

To determine: The return on investment for each investment center

Answer 7

Chapter 24, Problem 10QS

To determine

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:

$\begin{array}{l} R O I = \frac{N e t I n c o m e}{A v e r a g e t o t a l a s s e t s} \\ R O I (E x p a n d e d) = \frac{N e t I n c o m e}{S a l e s} \times \frac{S a l e s}{A v e r a g e t o t a l a s s e t s} \end{array}$

Or

$R O I = P r o f i t M a r g i n R a t i o \times A s s e t T u r n o v e r r a t i o$

To determine: The return on investment for each investment center

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 24 - Prob. 1DQ Ch. 24 - What is the difference between operating...Ch. 24 - What are controllable costs?Ch. 24 - _________costs are not within the manager’s...Ch. 24 - Prob. 5DQ Ch. 24 - Prob. 6DQ Ch. 24 - Prob. 7DQ Ch. 24 - What is the difference between direct and indirect...Ch. 24 - Prob. 9DQ Ch. 24 - Prob. 10DQ

Videos

Want to see the full answer?

Chapter 24 Solutions