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wasala18 wasala18
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4 months ago
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

Managerial Accounting


Edition: 4th
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tranle311tranle311
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4 months ago
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24%.

Projected ROI = $729,000 ÷ [($3,375,000 + $2,700,000) ÷ 2] = 24%
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wasala18 Author
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4 months ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
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yen
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Thanks for your help!!
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