Answer 9.34 and 9.35Please provide a complete answer 9.34If the investment turnover increased by 140% and ROS decreased by 25%, the ROIwould increase/decrease byEulg n rt 0 0000%9.35ale 000.0UrProf Food Hauz has the following results for the year:RevenuesP900,000270,000350,000Variable expensesFixed expensesThe total divisional assets are P1,500,000 and the company's target rate of return is 12percent, and the cost of capital is 10%, if sales increased to P1,000,000, what is the residualincome for UrProf?em

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9.34 If the investment turnover increased by 140% and ROS decreased by 25%, the ROI would increase/decrease by %

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter14: Decentralized Operations

Section: Chapter Questions

Problem 3SEQ: Division A of Kern Co. has sales of $350,000, cost of goods sold of $200,000, operating expenses of...

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Question

Answer 9.34 and 9.35

Please provide a complete answer

9.34
If the investment turnover increased by 140% and ROS decreased by 25%, the ROI
would increase/decrease by
Eulg n rt 0 0000
%
9.35
ale 000.0
UrProf Food Hauz has the following results for the year:
Revenues
P900,000
270,000
350,000
Variable expenses
Fixed expenses
The total divisional assets are P1,500,000 and the company's target rate of return is 12
percent, and the cost of capital is 10%, if sales increased to P1,000,000, what is the residual
income for UrProf?
em

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