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kupik [55]
4 years ago
9

The manager of the Beach Division of Treat Time is evaluating the acquisition of a new mobile ice cream server. The budgeted ope

rating income of the Beach Division is currently $2,940,000 with total assets of $28,600,000 and noninterest-bearing current liabilities of $600,000. The proposed investment would add $18,000 to operating income and would require an additional investment of $120,000. The targeted rate of return for the Beach Division is 9 percent. Ignoring taxes, how much is the return on investment of the Beach Division if the ice cream server is not purchased?
Business
1 answer:
Savatey [412]4 years ago
5 0

Answer:

ROI = 10.5%

Explanation:

The  ROI of a Division is the portion of then operating assets that is earned by  as operating income  by it. The higher the better.

Net operating assets = 28,600,000 - 600,000 = 28,000,000

ROI = Income/ Net operating assets × 100

ROI = 2,940,000/28,000,000  × 100

      = 10.5%

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Answer:

C. opportunity cost

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3 0
4 years ago
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4 years ago
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4 0
3 years ago
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3 years ago
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There will be 5 but please do read these to ensure you know them friend.

1: Contracts for the sale or lease of or a mortgage on real property. (Land, etc)

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5 0
3 years ago
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