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Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins
Edition 5ISBN: 0073526940Cost Management: A Strategic Emphasis 5th Edition by David Stout, Edward Blocher, Gary Cokins
Edition 5ISBN: 0073526940ROI; Different Measures for Total Assets Benjamin Joseph, Inc., has the following financial data for 2010 for its three regional divisions:
|
| Historical Cost | Current Cost | ||
Region | Operating Income | Net Book Value | Gross Book Value | Replacement Cost | Liquidation Value |
North Atlantic | $55,000 | $225,000 | $450,000 | $990,000 | $350,000 |
Mid Atlantic | 44,000 | 289,000 | 310,000 | 380,000 | 445,000 |
South Atlantic | 33,000 | 115,000 | 166,000 | 650,000 | 980,000 |
Required Calculate return on sales (ROS) for each division for 2010. The sales in the North, Mid, and South Atlantic regions are $2,350,000, $1,450,000, and $500,000, respectively. Calculate investment (asset) turnover and ROI for each of the four measures of investment.
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Step 1 of 3
The formula for calculating return on investment ROI is as follows:
Step 2 of 3
Step 3 of 3
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