MANAG.ACCOUNTING-CONNECT ACCESS >CUSTOM<
17th Edition
ISBN: 9781266862434
Author: Garrison
Publisher: MCG CUSTOM
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Question
Chapter 11, Problem 8E
1
To determine
Concept introduction:
The Return on Investment is also called ROI. The return means the profit you make as a result of your investments. Return on Investment is a performance measure used to evaluate the profitability or efficiency of an investments or compare the efficiency of a number of investments. ROI is generally defined as the ratio of net profit over the total cost of the investment. ROI is calculated by dividing the net income by the total cost of the investment.
To compute:
The margin, turnover and return on investment for each division.
2
To determine
Concept introduction:
Return on investment:
The Return on Investment is also called ROI. The return means the profit you make as a result of your investments. Return on Investment is a performance measure used to evaluate the profitability or efficiency of an investments or compare the efficiency of a number of investments. ROI is generally defined as the ratio of net profit over the total cost of the investment. ROI is calculated by dividing the net income by the total cost of the investment.
Which divisional manager seems to be doing the better job? Why?
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imend
using this measure in Ariel's balanced scorecard?
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to the scorecard measures that you created? Why or why not?
EXERCISE 11-8 Computing and Interpreting Return on Investment (ROI) LO11-1
Selected operating data for two divisions of Outback Brewing, Ltd.., of Australia are given below-
Division
New South
Wales
Queensland
$7,000,000
$2,000,000
$420,000
$800,000
$4,000,000
$2,000,000
$360,000
$950,000
Sales....
Average operating assets
Net operating income
Property, plant, and equipment (net)
Required:
Compute the rate of return for each division using the return on investment (ROI) formula
stated in terms of margin and turnover.
2.
1.
Which divisional manager seems to be doing the better job? Why?
EXERCISE 11-9 Return on Investment (ROL and Do
Case 1: ROI
You are comparing the performance of two (2) separate divisions, segments A and B, using ROI Analysis.
A
в
P100,000.00 P500,000.00
30,000.00
Sales
Operating Expenses
300,000.00
Net Operating income
70,000.00
200,000.00
Average Operating Assets
10,000.00
40,000.00
Required: Using ROI Analysis, which segment is performing better?
To answer this question, you need to:
1. Compute the ROi of each segment and
2. Compute the components of ROI of each segment
QS 22-9 Computing return on investment LO A1
Compute return on investment for each of the divisions below (each is an investment center). Which division performed the best, based on return on investment?
Chapter 11 Solutions
MANAG.ACCOUNTING-CONNECT ACCESS >CUSTOM<
Ch. 11 - Prob. 1QCh. 11 - Prob. 2QCh. 11 - Prob. 3QCh. 11 - Prob. 4QCh. 11 - Prob. 5QCh. 11 - Prob. 6QCh. 11 - Prob. 7QCh. 11 - Prob. 8QCh. 11 - Prob. 9QCh. 11 - Prob. 10Q
Ch. 11 - Prob. 1AECh. 11 - Prob. 2AECh. 11 - Prob. 1F15Ch. 11 - Prob. 2F15Ch. 11 - Prob. 3F15Ch. 11 - Prob. 4F15Ch. 11 - Prob. 5F15Ch. 11 - Prob. 6F15Ch. 11 - Prob. 7F15Ch. 11 - Prob. 8F15Ch. 11 - Prob. 9F15Ch. 11 - Prob. 10F15Ch. 11 - Prob. 11F15Ch. 11 - (
$1,000,000
300,000
700,000
500.000
$
200,000
...Ch. 11 - Prob. 13F15Ch. 11 - Prob. 14F15Ch. 11 - Prob. 15F15Ch. 11 - Prob. 1ECh. 11 - Prob. 2ECh. 11 - Prob. 3ECh. 11 - Prob. 4ECh. 11 - Prob. 5ECh. 11 - Prob. 6ECh. 11 - Prob. 7ECh. 11 - Prob. 8ECh. 11 -
EXERCISE 11-9 Return on Investment (ROI) and...Ch. 11 - Prob. 10ECh. 11 - Prob. 11ECh. 11 - Prob. 12ECh. 11 - Prob. 13ECh. 11 - Prob. 14ECh. 11 - Prob. 15ECh. 11 - Prob. 16ECh. 11 - Prob. 17PCh. 11 - Prob. 18PCh. 11 - Prob. 19PCh. 11 - Prob. 20PCh. 11 - Prob. 21PCh. 11 - Prob. 22PCh. 11 - Prob. 23PCh. 11 - Prob. 24PCh. 11 - Prob. 25PCh. 11 - Prob. 26C
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