Business, 07.05.2021 16:00 nguyendavis17
The South Division of Wiig Company reported the following data for the current year. Sales $3,000,000 Variable costs 1,950,000 Controllable fixed costs 600,000 Average operating assets 5,000,000 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.
1. Increase sales by $300,000 with no change in the contribution margin percentage.
2. Reduce variable costs by $150,000.
3. Reduce average operating assets by 4%.
(a) Compute the return on investment (ROI) for the current year. (Round ROI to 1 decimal place, e. g. 1.5.) Return on Investment %
(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 Action 1 % Action 2 % Action 3 %
Answers: 2
Other questions on the subject: Business
Business, 22.06.2019 06:00, olivernolasco23
Josie just bought her first fish tank a 36 -gallon glass aquarium, which she’s been saving up for almost a year to buy. for josie, the fish tank is most likely what type of purchase
Answers: 1
Business, 22.06.2019 06:40, haleyturkey
Depreciation on the company's equipment for 2017 is computed to be $18,000.the prepaid insurance account had a $6,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains. the office supplies account had a $700 debit balance on december 31, 2016; and $3,480 of office supplies were purchased during the year. the december 31, 2017, physical count showed $300 of supplies available. two-thirds of the work related to $15,000 of cash received in advance was performed this period. the prepaid insurance account had a $6,800 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of insurance policies showed that $5,800 of coverage had expired. wage expenses of $3,200 have been incurred but are not paid as of december 31, 2017.
Answers: 3
Business, 22.06.2019 10:40, esta54
At cooly cola, we are testing the appeal of our new diet one cola. in a taste test of 250 randomly chosen cola drinkers, 200 consumers preferred diet one cola to the leading brand. assuming that the sample were large enough, the large-sample 95% confidence interval for the population proportion of cola drinkers that prefer diet one cola would be:
Answers: 1
Business, 22.06.2019 19:40, jby
The common stock of ncp paid $1.35 in dividends last year. dividends are expected to grow at an annual rate of 5.30 percent for an indefinite number of years. a. if ncp's current market price is $22.57 per share, what is the stock's expected rate of return? b. if your required rate of return is 7.3 percent, what is the value of the stock for you? c. should you make the investment? a. if ncp's current market price is $22.57 per share, the stock's expected rate of return is
Answers: 3
You know the right answer?
The South Division of Wiig Company reported the following data for the current year. Sales $3,000,00...
Questions in other subjects:
Mathematics, 17.05.2021 21:10
Mathematics, 17.05.2021 21:10
