23(08)-4B_9e - Invested assets 3. Rate of return on =...

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Problem 23(08)-4B Name: Section: Enter the appropriate amount in the shaded cells below. A red asterisk (*) will appear to the right of, above, or below an incorrect amount in the outlined cells. 1. Rate of return on = Profit margin x Investment turnover investment (ROI) Rate of return on = Income from operations x Sales investment (ROI) Sales Invested Assets Turbine Division: ROI = x = 2. MEGA ENGINES INC. - TURBINE DIVISION Estimated Income Statements For the Year Ended December 31, 2008 Proposal 1 Proposal 2 Proposal 3 Sales Cost of goods sold Gross profit Operating expenses Income from operations
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Unformatted text preview: Invested assets 3. Rate of return on = Profit margin x Investment turnover investment (ROI) Rate of return on = Income from operations x Sales investment (ROI) Sales Invested Assets Proposal 1: ROI = x = Proposal 2: ROI = x = Proposal 3: ROI = x = 4. Proposal meeting the required rate of return: Proposal 3 5. Rate of return on investment (ROI) = Profit margin x Required investment turnover = x Required investment turnover Required investment turnover = Current investment turnover = Increase in investment turnover =...
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This note was uploaded on 10/22/2010 for the course BUSINESS BAIU09 taught by Professor Mr.ken during the Spring '10 term at American InterContinental University Dunwoody.

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23(08)-4B_9e - Invested assets 3. Rate of return on =...

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