Question: You must prepare a return on investment analysis for the regional manager of Veggie Burgers. This growing chain is trying to decide which outlet of

You must prepare a return on investment analysis for the regional manager of Veggie Burgers. This growing chain is trying to decide which outlet of two alternatives to open. The first location (A) requires a $500,000 investment and is expected to yield annual net income of $85,000. The second location (B) requires a $200,000 investment and is expected to yield annual net income of $42,000. Compute the return on investment for each Veggie Burgers alternative and then make your recommendation in a one-half page memorandum to the regional manager. (The chain currently generates an 18% return on total assets.)

Step by Step Solution

★★★★★

3.43 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Location Net Income Average Assets Return on Assets Location A 8500... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

115-B-M-A-P-E (610).docx

120 KBs Word File

Students Have Also Explored These Related Managerial Accounting Questions!

A grocery store chain is trying to decide how much shelf space to devote to organic produce. If they don't stock enough, their more upscale customers will shop at the competing grocery store. If they...

A corporation is trying to decide which of three makes of automobile to order for its fleet-domestic, Japanese, or European. Five cars of each type were ordered, and, after 10,000 miles of driving,...

A B2C company is trying to decide which of its sell-side e-business activities it should outsource. Select a single supplier (single tick for each function) that you think can best deliver each of...

You must prepare a return on investment analysis for the regional manager of Out-and-In Burgers. This growing chain is trying to decide which outlet of two alternatives to open. The first location...

You must prepare a return on investment analysis for the regional manager of Fast&Great Burgers. This growing chain is trying to decide which outlet of two alternatives to open. The first location...

Che Exercise 22-9 Investment center analysis LO A1 You must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is trying to decide which...

Zira Co. reports the following production budget for the next four months. April 582 Production (units) May 610 June 616 July 596 Each finished unit requires four pounds of raw materials and the...

Exercise 09-9 Investment center analysis LO A1 You must prepare a return on investment analysis for the regional manager of Fast & Great Burgers. This growing chain is trying to decide which outlet...

A hollow right-circular cylinder is made of cast iron and has an outside diameter of 75mm and an inside diameter of 60mm. If the cylinder is loaded by an axial compressive force of 50kN, determine...

Following eq. 10.17, write an equation for the preparation of ethyl pentanoate from the correct acid and alcohol.

Match each differential equation with it's particular solution form. - abcdef y ' ' + 8 y ' + 1 6 y = 5 e 4 t - abcdef y ' ' 2 5 y = 3 t 2 + 5 t 2 - abcdef y ' ' + 8 y ' + 1 6 y = 4 cos ( 3 t ) -...

Find the present value of (1) A single payment of $24,000 at 6 percent for 12 years, (2) 12 annual payments of $2,000 at 6 percent, (3) A single payment of $5,000 at 9 percent for five years, and (4)...

Angel Corporation gives three weeks paid vacation to each employee who has worked at the company for one year. Based on studies of employee turnover and previous experience, management estimates that...

Sanchez Company manufactures and sells electronic games. Each game costs $50 to produce, sells for $90, and carries a warranty that provides for free replacement if it fails during the two years...

The following selected transactions are from Ohlm Company. 2016 Dec. 16 Accepted a $10,800, 60-day, 8% note dated this day in granting Danny Todd a time extension on his past-due account receivable....

At the end of October, the payroll register for Global Tool Corporation contained the following totals; wages, $742,000; federal income taxes withheld, $189,768; state income taxes withheld, $31,272;...

What types of vegetation are normally considered real property?

What information is recorded on a job cost sheet? How do management and employees use job cost sheets?

In a job order cost accounting system, what records serve as a subsidiary ledger for Goods in Process Inventory? For Finished Goods Inventory?

What journal entry is recorded when a materials manager receives a materials requisition and then issues materials (both direct and indirect) for use in the factory?

The following prices are available for call and put options on a stock priced at $ 5 0 . The risk - free rate is 6 percent and the volatility is 0 . 3 5 . The March options have 9 0 days remaining...

Modern Artifacts can produce keepsakes that will be sold for $110 each. Nondepreciation fixed costs are $1,300 per year, and variable costs are $70 per unit. The initial investment of $3,900 will be...

el A certain drug is used to treat asthma. In a clinical trial of the drug, 19 of 267 treated subjects experienced headaches 1-PropZTest (based on data from the manufacturer). The accompanying...