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Cleopatra Corporation's Lingerie division has a segment margin of $729,000 and net sales revenue of ...

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Cleopatra Corporation's Lingerie division has a segment margin of $729,000 and net sales revenue of ...

Cleopatra Corporation's Lingerie division has a segment margin of $729,000 and net sales revenue of $5,400,000 for the current reporting period. Average total assets for the period were $3,375,000. The division manager is considering implementing a new inventory system which would reduce inventory by $675,000. Assuming no change in sales or segment margin, the projected ROI with the reduction in inventory would be

▸ 20%.

▸ 13.5%.

▸ 21.6%.

▸ 24%.

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Managerial Accounting

Edition: 4^th

Author: Davis

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