Answered

Find trusted answers to your questions with the help of IDNLearn.com's knowledgeable community. Ask any question and get a detailed, reliable answer from our community of experts.

Investment Center Sales Income Average Invested Assets Electronics $ 40,500,000 $ 2,916,000 $ 16,200,000 Sporting goods 20,740,000 2,074,000 12,200,000 1. Compute return on investment for each department. Using return on investment, which department is most efficient at using assets to generate returns for the company

Sagot :

Answer and Explanation:

The computation of the return on investment is shown below;

We know that

Return on Investment is

= (Net Income ÷ Average Operating Assets] × 100

For Electronics

= [$29,16,000 ÷ 162,00,000] × 100

= 18%

And,

For Sporting goods

= [$20,74,000 ÷ 122,00,000] × 100

= 17%

So here the electronics department should be selected as it has high return on investment  

We value your presence here. Keep sharing knowledge and helping others find the answers they need. This community is the perfect place to learn together. IDNLearn.com has the solutions to your questions. Thanks for stopping by, and see you next time for more reliable information.