1 Calculate RI for each of the retail outlets based on operating income and using total assets as the measure of investment Suppose that the South Retail Outlet is considering adding a new group of products from Europe that will cost 325000 The products are expected to bring in operating income of 22000 What effect would this project have on the RI of the South Retail Outlet Based on RI would the South Retail Outlet manager accept or reject the project Why

Answer rating: 100% (QA)

Solution 1 The formula for calculating ROI with Dupont is given below ROI Dupont Profit MarginAsset Turnover The Dupont ROI is calculated with the use ... View the full answer