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Verizon LTE 7:03 PM ezto.mheducation.com 16.67 points Exercise 9-5 Return on Inv

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Question

Verizon LTE 7:03 PM ezto.mheducation.com 16.67 points Exercise 9-5 Return on Investment (ROI) [LO9-1] Provide the missing data in the following table for a distributor of martial arts products: (Enter your Margin and ROI answers to the nearest percentage (i.e., 0.123 should be entered as 12).) Alpha Charlie Sales Net operating income Average operating assets Margin Turnover Retum on investment 414.000 6.240S 74.700 489.000 81% 15% 481% 30% References eBook &Resources; Worksheet Difficulty: 1 Easy Exercise 9-5 Return Learning Objective: 09-01 on Investment (RO Compute return on LO9-1 nvestment (ROl) and show how changes in sales expenses, and assets affect ROI

Explanation / Answer

Exercise 9 – 5

DIVISION

Alpha

Bravo

Charlie

Sales

$2,814,000

$414,000

$498,000

Net Operating Income

$225,120

$66,240

$74,700

Average Operating Assets

$469,000

$138,000

$249,000

Margin

8%

16%

15%

Turnover

6

3

2

Return on Investment[ROI]

48%

48%

30%

Exercise 9 - 13

Margin

8.90%

Turnover

4.60 Times

Return on Investment[ROI]

40.94%

Margin = [$11,46,320 / 1,28,80,000] x100 = 8.90%

Turnover = $1,28,80,000 / 28,00,000 = 4.60 Times

Return on Investment [ROI] = 8.90% x 4.60 = 40.94%

DIVISION

Alpha

Bravo

Charlie

Sales

$2,814,000

$414,000

$498,000

Net Operating Income

$225,120

$66,240

$74,700

Average Operating Assets

$469,000

$138,000

$249,000

Margin

8%

16%

15%

Turnover

6

3

2

Return on Investment[ROI]

48%

48%

30%