Determining missing items in return on investment computationOne item is omitted from each of the following computations of the return on investment:Return on Investment=Profit MarginxInvestment Turnover27 % =10 % x(a) (b) =16 % x0.75 24 % =(c) x1.5 14 % =20 % x(d) (e) =15 % x1.8 Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places.(a)fill in the blank 1(b)fill in the blank 2 %(c)fill in the blank 3 %(d)fill in the blank 4(e)fill in the blank 5 %

Return on investment is an accounting metric used to express the net income as a percentage of…

Answered: return on investment computation

Business

Accounting

return on investment computation

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 12E

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Question

Determining missing items in return on investment computation

One item is omitted from each of the following computations of the return on investment:

Return on Investment	=	Profit Margin	x	Investment Turnover
27 %		=	10 %		x	(a)
(b)		=	16 %		x	0.75
24 %		=	(c)		x	1.5
14 %		=	20 %		x	(d)
(e)		=	15 %		x	1.8

Determine the missing items identified by the letters as shown above. If required, round your answers to two decimal places.

(a)	fill in the blank 1
(b)	fill in the blank 2 %
(c)	fill in the blank 3 %
(d)	fill in the blank 4
(e)	fill in the blank 5 %

Formula Formula ROI (%) = Net Income Principal Amount × 100

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