Home

Insert

Draw

Layout

Review

View

References

In$-$class Practical fualuation

ROI and Ri

YOUR NAME $q,$

$q,$

Editor

bri Regular $($Be

$11$

B

I

$v_{?}$

aA

v

$$

A

$=$

$$

$$

YOUR STUDENT NUMERR $q,$

Drone Racers inc. is a competitive drone racing chat that geterter three distors: Alue ling. Cardinal, and Oricle... Selected sales and operating data for these three divisions are providnd below:

$\backslash$table$[[,$DEVISION$],[$Bluellay$,$Cardinal,Oride$],[$Sales$,$$ $1\mathrm{.}200\mathrm{.}000\mathrm{.}00,$$ $2,500,000,00,$$ $1\mathrm{.}400\mathrm{.}000\mathrm{.}00],[$Average Operating Assets,$ $1\mathrm{.}000\mathrm{.}000\mathrm{.}00,$$ $500,000\mathrm{.}00,$$ $300,000\mathrm{.}00],[$Net Operating Income,$550,000\mathrm{.}00,560,000\mathrm{.}00,$$ $90,000\mathrm{.}00],[$Minimam Required Rate of Return,$145,10\%,16\%]]$

$(1)$ A$.$ Calculate the ROI for each division using the formula provided by pour instruction $($on the white board$).$

B$.$ Assume that each division in preserted with an imestrent opportunity that would yield a $35\%$ rate of return, I performance is being measured by ROC, which division$($s$)$ will probably accept or reject the opportunity?

$\backslash$table$[[,$BNISION$],[$Blue Jay,Cardinal,Oriele$],[$ROI$,,,],[$Theject$/$accept new project with $35\%$ rate of return based on ROI? Select one.,,,$]]$

$(2)$ Calculate the R$1$ for each division using the formula provided by your instructor $($on the white board$)$:

$\backslash$table$[[,$Devision$],[,$Bloe Jay,Cardinal,Oriole$],[,,,]]$

$(3)$ Which of the following is NOT a way to improve ROO?

A$.$ Incresse sales

$8.$ Reduce expenses

C$.$ Increase assets

D$.$ None of the above

B

I