Swifty Corporation had average operating assets of $6800000 and sales of $3150000 in 2027. If the controllable margin was $612000, the ROI was 19% 38% 46% 9%
Added by Kimberly O.
Close
Step 1
Step 1: The formula for Return on Investment (ROI) is: $$ROI = \frac{Controllable Margin}{Average Operating Assets}$$ Show more…
Show all steps
Your feedback will help us improve your experience
Niamat Khuda and 70 other Principles of Accounting educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Recommended Videos
Dacker Products is a division of a major corporation. The following data are for the most recent year of operations: Sales: $37,080,000 Net operating income: $3,108,960 Average operating assets: $8,600,000 The company's minimum required rate of return: 16% The division's margin used to compute ROI is closest to: Multiple Choice: 31.6%, 36.2%, 23.2%, 8.4%
Niamat K.
Assume a company reported the following results: Sales $ 300,000 Net operating income ? Average operating assets $ 187,500 Margin ? Turnover ? Return on investment (ROI) 65% The margin is closest to
Alex H.
Exercise 10-13 Effects of Changes in Sales, Expenses, and Assets on ROI [LO10-1] The following information applies to the questions displayed below: CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales: $5,220,000 Net operating income: $261,000 Average operating assets: $870,000 The following questions are to be considered independently. 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,600,000 increase in sales, requiring a $494,000 increase in average operating assets, with a resulting $335,750 increase in net operating income. What would be the company's ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Madhur L.
Recommended Textbooks
Horngren’s Cost Accounting
Cost Accounting A Managerial Emphasis
Principles of Accounting Volume 1: Financial Accounting
Transcript
Watch the video solution with this free unlock.
EMAIL
PASSWORD