Return on investment Mitchell Company calculated its return on investment as 13 percent. Sales are now $270,000,

Question:

Return on investment Mitchell Company calculated its return on investment as 13 percent. Sales are now $270,000, and the amount of total operating assets is $450,000.

Required

a. If expenses are reduced by $27,000 and sales remain unchanged, what return on investment will result?

b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamental Managerial Accounting Concepts

ISBN: 978-0078110894

6th Edition

Authors: Edmonds, Tsay, olds

See More Books

Question Posted: Dec 07, 2011 05:22 AM

See More Questions

Oswalt Company calculated its return on investment as 13 percent. Sales are now $180,000, and the amount of total operating assets is $300,000. Required a. If expenses are reduced by $18,000 and...
The income from operations and the amount of invested assets in each division of Devon Industries are as follows: (a) Compute the rate of return on investment for each division.(b) Which division is...
Albany Company calculated its return on investment as 10 percent. Sales are now $300,000, and the amount of total operating assets is $480,000. Required a. If expenses are reduced by $30,000 and...
Suppose you are a depositor at First Street Bank. You hear a rumor that the bank has suffered serious losses on its loans. Every depositor knows that the rumor isnt true, but each thinks that most...
Organizations communicate their ethical principles in a variety of ways: through the behavior of leaders, in writing, by offering training programs, performance assessment methods, and so on. Visit...
The hollow drill pipe for an oil well (see figure) is 6.2 in. in outer diameter and 0.75 in. in thickness. Just above the bit, the compressive force in the pipe (due to the weight of the pipe) is 62...
Based on information in this chapter, recommend the most effective HR administrative approach or approaches for the owner of a small business with fewer than 50 employees and infrequent staffing...
Clason corp. manufactures radiation- shielding glass panels. Suppose Clason is considering spending the following amounts on a new TQM program: Strength- testing one item from each batch of...
Consider a six-point sequence x[n] which is only nonzero for 0 n 5 where it takes values = == [0] 1, [1] 0, r[2] = 2, r[3] = 2, x[4] = b, x[5] = 1. The number b (i.e., the value of x[4]) is unknown,...
Compute the output of the MixColumns transformation for the following sequence of input bytes 67 89 AB CD. Apply the InvMixColumns transformation to the obtained result to verify your calculations....
An investment center of Aguilar Corporation shows an operating income of $7,500 on total operating assets of $60,000. Required Compute the return on investment.
Schiavo Corporation has a desired rate of return of 8 percent. Frank Rodomil is in charge of one of Schiavos three investment centers. His center controlled operating assets of $2,500,000 that were...
What is an implicit tax, and how does it arise?
When the velocity v of an object is very large, the magnitude of the force due to air resistance is proportional to v with the force acting in opposition to the motion of the object. A shell of mass...
How does the evolution of family structures and dynamics, including non-traditional forms such as single-parent households and chosen families, reflect broader shifts in societal attitudes and...
Answer the question: Question 2 a. Discuss the four (4) Development Stages of the project team (12 marks) b. Give a detailed explanation for the steps you would take in preparing your first project...
Give an excutive summary of the HR strategy project for Southwest Airline HR.
How revenue management is beneficial for cosmetic product business? Justify your answer with suitable example.
What is the present value of the following set of cash flows, discounted at 15% per year? Year CF 1 100 2 -100 3 200 4 -200
10m solution. If Ka(HA) = 10 then pOH of solution will be [Given : log4=0.6] (A) 6.7 (B) Greater than 6.7 & less than 7.0 (C) Greater 7.0 & less than 7.3 (D) Greater than 7.3
What is clonal selection?
Leach Inc. experienced the following events for the first two years of its operations: 2018: 1. Issued $10,000 of common stock for cash. 2. Provided $78,000 of services on account. 3. Provided...
Use the Target Corporation's Form 10-K to answer the following questions related to Target's 2015 fiscal year (year ended January 30, 2016). Target's Form 10-K is available on the company's website...
The accounting records of Robin Co. showed the following balances at January 1, 2018:...
I am running for Vice President of Legislative Affairs at my University as part of the Student Government Association. I am need of ideas!!! Keep this in mind. My platform is centered around pushing...
What are some ways that synergistic communication can positively affect organizational communication? Furthermore, how does SC relate to the achieving of (or the not achieving of) the overall goals...
Choose an organization's website. Provide the name of the company and the URL address at the top of your answer. i) Analyze the website using THREE (3) relevant corporate communication concepts. (9%)...

Return on investment Mitchell Company calculated its return on investment as 13 percent. Sales are now $270,000,

Question:

Step by Step Answer:

Operating income Operating assets ROI Operating income 450000 13 Operating income Oper...View the full answer

Fundamental Managerial Accounting Concepts

Students also viewed these Managerial Accounting questions