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

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Answer 1

Question

Chapter 24, Problem 9QS

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

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Answer 2

Question

Chapter 24, Problem 9QS

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

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Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 24, Problem 9QS

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

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Answer 4

Question

Chapter 24, Problem 9QS

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

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See solution

Answer 5

Chapter 24, Problem 9QS

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 9QS

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 9QS

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

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Answer 10

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Answer 11

Ch. 24 - Prob. 1DQ Ch. 24 - What is the difference between operating...Ch. 24 - What are controllable costs?Ch. 24 - Prob. 4DQ 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

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