For Year 1,one division of Apex Company reported operating assets of $5,000,000 and operating income of $750,000.Apex has established a target return on investment (ROI)of 14% for the division.
Required:
1)Calculate the division's ROI for Year 1.Did it achieve the target set by the company?
2)Assuming that operating assets for Year 2 increase by 10%,by how much would operating income have to increase to reach the target of 14%?

Question

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The Answer of For Year 1,one division of Apex Company reported operating assets of $5,000,000 and operating income of $750,000.Apex has established a target return on investment (ROI)of 14% for the division.
Required:
1)Calculate the division's ROI for Year 1.Did it achieve the target set by the company?
2)Assuming that operating assets for Year 2 increase by 10%,by how much would operating income have to increase to reach the target of 14%?

For Year 1,one Division of Apex Company Reported Operating Assets