“i know headquarters wants us to add that new product line,” said dell havasi, manager of billings company’s office products division. “but i want to see the numbers before i make any move. our division’s return on investment (roi) has led the company for three years, and i don’t want any letdown.” billings company is a decentralized wholesaler with five autonomous divisions. the divisions are evaluated on the basis of roi, with year-end bonuses given to the divisional managers who have the highest rois. operating results for the company’s office products division for the most recent year are given below: sales $ 21,200,000 variable expenses 13,405,600 contribution margin 7,794,400 fixed expenses 5,950,000 net operating income $ 1,844,400 divisional operating assets $ 4,240,000
I
tried to compute office products division’s RIO but my calculations went wrong,
I tried to take help from my instructor but I couldn’t manage to contact him as
it was weekend then I searched for online help and got the detailed answer at http://www.solutioninn.com/i-know-headquarters-wants-us-to-add-that-new-product-line
ROI = Net operating income x 100 Divisional operating assets ROI = $1,844,400 x 100 $4,240,000 ROI = 43.05% Explanation: ROI is calculated as net operating income divided by divisional operating assets multiplied by 100. The net operating income is $1,844,400 while the divisional operating asset is $4,240,000. The division of net operating income by divisional operating assets gives ROI.
d) social security number let me know if i am correct or not, so i can edit the answer.
muslims control the north africa during the period of 1500 up to 1800. they made a barrier to prevent further european exploration from entering the africa from the north. however, the dutch ware still able to move toward the interior with having south africa as one of the routes leading to the east for trading with asia.
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