Use the information below to answer the following question(s).
Ruth Cleaning Products manufactures home cleaning products. The company has two divisions, Bleach and Bleach-2. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for the year just ended:
The company is currently using a required rate of return of 15 percent.
-What are Bleach's and Bleach-2's return on investment based on current values?
A) 0.22; 0.67
B) 0.42; 0.52
C) 0.52; 0.42
D) 0.67; 0.22
E) 0.50; 0.45

Question

Use the information below to answer the following question(s).
Ruth Cleaning Products manufactures home cleaning products. The company has two divisions, Bleach and Bleach-2. Because of different accounting methods and inflation rates, the company is considering multiple evaluation measures. The following information is provided for the year just ended:
  The company is currently using a required rate of return of 15 percent.
-What are Bleach's and Bleach-2's return on investment based on current values?
A) 0.22; 0.67 
B) 0.42; 0.52 
C) 0.52; 0.42 
D) 0.67; 0.22 
E) 0.50; 0.45

Quizplus · Accepted Answer

Bleach: $155,000/$300,000 = 0.52
Bleach-2: $105,000/$250,000 = 0.42

Use the Information Below to Answer the Following Question(s)