NEED ANSWERED NOW answer the four problems with % in it. Question 1 The South Di
ID: 2576155 • Letter: N
Question
NEED ANSWERED NOW
answer the four problems with % in it.
Question 1
The South Division of Wiig Company reported the following data for the current year.
Top management is unhappy with the investment center’s return on investment (ROI). It asks the manager of the South Division to submit plans to improve ROI in the next year. The manager believes it is feasible to consider the following independent courses of action.
(a) Compute the return on investment (ROI) for the current year. (Round ROI to 1 decimal place, e.g. 1.5.)
(b) Using the ROI formula, compute the ROI under each of the proposed courses of action. (Round ROI to 1 decimal place, e.g. 1.5.)
Return on investment
Sales $2,955,000 Variable costs 1,973,940 Controllable fixed costs 602,200 Average operating assets 5,041,000Explanation / Answer
a)
b)
Sales $ 2,955,000 Less: variable expense $ 1,973,940 Contribution $ 981,060 Contribution % 33.20% Less: Controllable Fixed Costs $ 602,200 Operating Income (A) $ 378,860 Average Operating Assets (B) $ 5,041,000 ROI (A/B) 7.52%Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.