A company has operating income of​ $300,000, revenues of​ $1,500,000, total assets of​ $2,000,000 and an ROI of​ 15%. To improve the​ ROI, to increase ROI to​ 20%, which of the following investment turnovers would need to be​ achieved? A. .75 B.1.5 C. 2 D.1

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter10: Evaluating Decentralized Operations
Section: Chapter Questions
Problem 4BE: Profit margin, investment turnover, and ROI Briggs Company has operating income of 36,000, invested...
icon
Related questions
Question

A company has operating income of​ $300,000, revenues of​ $1,500,000, total assets of​ $2,000,000 and an ROI of​ 15%. To improve the​ ROI, to increase ROI to​ 20%, which of the following investment turnovers would need to be​ achieved?

A. .75

B.1.5

C. 2

D.1

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Accounting
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College