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PolarNik [594]
3 years ago
14

“i know headquarters wants us to add that new product line,” said dell havasi, manager of billings company’s office products div

ision. “but i want to see the numbers before i make any move. our division’s return on investment (roi) has led the company for three years, and i don’t want any letdown.” billings company is a decentralized wholesaler with five autonomous divisions. the divisions are evaluated on the basis of roi, with year-end bonuses given to the divisional managers who have the highest rois. operating results for the company’s office products division for the most recent year are given below: sales $ 21,200,000 variable expenses 13,405,600 contribution margin 7,794,400 fixed expenses 5,950,000 net operating income $ 1,844,400 divisional operating assets $ 4,240,000
Business
2 answers:
Eduardwww [97]3 years ago
5 0

Answer:

ROI = <u>Net operating income</u>        x 100

          Divisional operating assets

ROI = <u>$1,844,400</u>      x 100

          $4,240,000

ROI =  43.05%                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              

Explanation:

ROI is calculated as net operating income divided by divisional operating assets multiplied by 100. The net operating income is $1,844,400                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   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The division of net operating income by divisional operating assets gives ROI.  

Vikentia [17]3 years ago
4 0
<span>I tried to compute office products division’s RIO but my calculations went wrong, I tried to take help from my instructor but I couldn’t manage to contact him as it was weekend then I searched for online help and got the detailed answer at http://www.solutioninn.com/i-know-headquarters-wants-us-to-add-that-new-product-line  </span>
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