MANAGERIAL ACCT.F/MANAGERS>CUSTOM<
MANAGERIAL ACCT.F/MANAGERS>CUSTOM<
4th Edition
ISBN: 9781307090147
Author: Noreen
Publisher: MCG/CREATE
Question
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Chapter 12, Problem 12.18P

1.

To determine

Compute the office products division’s ROI of the year.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

2.

To determine

Compute the office products division’s ROI of the new product line.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

3.

To determine

Compute the office products division’s ROI of the next year assuming it performs the same as this year and adds the new product line.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

4.

To determine

Reason to accept or reject product line.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

5.

To determine

Reason for adding the new product line in office product division.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

6.

To determine

Evaluate the performance by using residual income with minimum required rate of return being 12%.

Introduction: Return on investments is difference between cost of investment and net profit. It is also performance measure which evaluates the efficiency of the investment made. It is even used in comparing the efficiency of difference between investments.

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