Question: (Missing data) Fill in the missing numbers in the following three independent cases. 33.(Missing data) Tamara Billings is doing a case for her cost accounting
(Missing data) Fill in the missing numbers in the following three independent cases.
33.(Missing data) Tamara Billings is doing a case for her cost accounting class for which she has only partial information. She knows that a company has an ROI of 14 percent, average total assets of $7,080,000, and total expenses of $6,375,000. She needs to know the income, revenues, asset turnover, and profit margin.
CHAPTER 20 Measuring Short-Run Organizational Performance 951
a. Find each of the amounts needed by Tamara.
b. Prove that ROI is 14 percent from the amounts computed in part a.
Revenue Expenses Segment income Average total assets Asset turnover Profit margin CASE a CASE 2 $225,000 $200,000 f b $600,000 h d CASE 3 k + 8% i 1 $80,000 m 2.5 n 12% Achieved ROI e Residual income Target ROI $ 30,000 12% $ 2,500 0 14%
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