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Top management is trying to determine which would be the best choice of the following: Data of investment choices: 1 Sales $10,000,000 Operating income 200,000 Average operating assets

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 25

Top management is trying to determine which would be the best choice of the following:

Data of investment choices:

1

Sales

$10,000,000

Operating income

200,000

Average operating assets

2,000,000

Required: Compute the Return on Investment

9%

12%

8%

10%

Formula Formula ROI (%) = Net Income Principal Amount × 100

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