Monday 11 November 2013

The following data pertain to Dakota Division's most recent year of operations. Income $ 3,000,000 Sales revenue 60,000,000 Average invested capital 30,000,000 Required: Which of the following ways could improve the Dakota Division's ROI to 16 percent? (You may select more than one answer.) incorrect Improve the sales margin to 7 percent by increasing income to $4,200,000. correct Improve the sales margin to 8 percent by increasing income to $4,800,000. correct Improve the turnover to 3.2 by decreasing average invested capital to $18,750,000. incorrect Improve the turnover to 3.305 by decreasing average invested capital to $18,154,312.

The following data pertain to Dakota Division's most recent year of operations.

          
  Income $ 3,000,000  
  Sales revenue   60,000,000  
  Average invested capital   30,000,000  


Required:
Which of the following ways could improve the Dakota Division's ROI to 16 percent? (You may select more than one answer.)

incorrect    Improve the sales margin to 7 percent by increasing income to $4,200,000.
correct  Improve the sales margin to 8 percent by increasing income to $4,800,000.
correct  Improve the turnover to 3.2 by decreasing average invested capital to $18,750,000.
incorrect    Improve the turnover to 3.305 by decreasing average invested capital to $18,154,312.

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