This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Bob's Cellular Phone Company uses ROI to measure divisional performance. Annual ROI calculations for ... (Read 114 times)

biggirl4568

  • Hero Member
  • *****
  • Posts: 551
on: Mar 6, 2021
Bob's Cellular Phone Company uses ROI to measure divisional performance. Annual ROI calculations for each division have traditionally employed the ending amount of invested capital along with annual operating income and net revenue. The Dupont method is generally used. The company's Phone Accessories Division had the following results for the last two years:

2015 ROI = ($2,000,000/$20,000,000) × ($20,000,000/$10,000,000) = 0.20
2016 ROI = ($2,400,000/$25,000,000) × ($25,000,000/$15,000,000) = 0.16 

Corporate management was disappointed in the performance of the division for 2016, since it had made an additional investment in the division that was budgeted for a 23% ROI. 

Required:
a. Discuss some factors that may have contributed to the decrease in ROI for 2016. 
b. Would there have been any substantial difference if average capital had been used?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
Buy Test-Bank


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by biggirl4568 on Mar 6, 2021

31809pancho

  • Sr. Member
  • ****
  • Posts: 317
Reply #1 on: Mar 6, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
Answer Preview
Only 32% of students answer this correctly


biggirl4568

  • Member
  • Posts: 551
Reply 2 on: Mar 6, 2021
YES! Correct, THANKS for helping me on my review

Dinolord

  • Member
  • Posts: 313
Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

« previous next »
 

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

Asthma attacks and symptoms usually get started by specific triggers (such as viruses, allergies, gases, and air particles). You should talk to your doctor about these triggers and find ways to avoid or get rid of them.

Did you know?

Calcitonin is a naturally occurring hormone. In women who are at least 5 years beyond menopause, it slows bone loss and increases spinal bone density.

Did you know?

The toxic levels for lithium carbonate are close to the therapeutic levels. Signs of toxicity include fine hand tremor, polyuria, mild thirst, nausea, general discomfort, diarrhea, vomiting, drowsiness, muscular weakness, lack of coordination, ataxia, giddiness, tinnitus, and blurred vision.

Did you know?

More than 2,500 barbiturates have been synthesized. At the height of their popularity, about 50 were marketed for human use.

Example of an employee performance evaluation form. Example of an employee performance evaluation form.
Sample Items from the Brief Multidimensional Measure of Religiousness/Spirituality (BMMRS) Sample Items from the Brief Multidimensional Measure of Religiousness/Spirituality (BMMRS)
To measure engine oil pressure, remove the oil pressure sending (sender) unit usually located near ... To measure engine oil pressure, remove the oil pressure sending (sender) unit usually located near ...
Dosage Calculations: A Multi-Method Approach, 2nd Edition Dosage Calculations: A Multi-Method Approach, 2nd Edition
Cellular Diversity Cellular Diversity
Use the Henderson-Hasselbalch equation to perform the following calculations. Use the Henderson-Hasselbalch equation to perform the following calculations.
Video: Bacteriophage (Virus) - Mice Experiment

For a complete list of videos, visit our video library