Compute Rundle's return on investment for Year 2. Recompute Rundle's ROI under each of the following independent assumptions: (1) Sales increase from $1,240,000 to $1,488,000, thereby resulting in an increase in operating income from $76,880 to $81,840. (2) Sales remain constant, but Rundle reduces expenses, resulting in an increase in operating income from $76,880 to $79,360. (3) Rundle is able to reduce its invested capital from $620,000 to $496,000 without affecting operating income. Complete this question by entering your answers in the tabs below. Req A to C Recompute Rundle's ROI under each of the following independent assumptions: (De not round intermediate calculations. Round your answers to 2 decimal places. (.e.,0.2345 should be entered as 23.45).) (1) Sales increase from $1,240,000 to $1,488,000, thereby resulting in an increase in operating income from $76,880 to $81,840. (2) Sales remain constant, but Rundle reduces expenses, resulting in an increase in operating income from $76,880 to $79,360. (3) Rundle is able to reduce its invested capital from $620,000 to $496,000 without affecting operating income. Reg D Show less &

Compute Rundle's return on investment for Year 2. Recompute Rundle's ROI under each of the following independent assumptions: (1) Sales increase from $1,240,000 to $1,488,000, thereby resulting in an increase in operating income from $76,880 to $81,840. (2) Sales remain constant, but Rundle reduces expenses, resulting in an increase in operating income from $76,880 to $79,360. (3) Rundle is able to reduce its invested capital from $620,000 to $496,000 without affecting operating income. Complete this question by entering your answers in the tabs below. Req A to C Recompute Rundle's ROI under each of the following independent assumptions: (De not round intermediate calculations. Round your answers to 2 decimal places. (.e.,0.2345 should be entered as 23.45).) (1) Sales increase from $1,240,000 to $1,488,000, thereby resulting in an increase in operating income from $76,880 to $81,840. (2) Sales remain constant, but Rundle reduces expenses, resulting in an increase in operating income from $76,880 to $79,360. (3) Rundle is able to reduce its invested capital from $620,000 to $496,000 without affecting operating income. Reg D Show less &

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter9: Responsibility Accounting And Decentralization

Section: Chapter Questions

Problem 3PB: The income statement comparison for Rush Delivery Company shows the income statement for the current...

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If sales and average operating assets for Year 2 are identical to their values in Year 1, yet operating income is higher, Year 2 return on investment (compared with Year 1 ROI) will a. decrease b. increase c. stay the same d. cannot be determined from the above information
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