Return on investment Carson Company calculated its return on investment as 15 percent. Sales are now $180,000,

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Return on investment Carson Company calculated its return on investment as 15 percent. Sales are now $180,000, and the amount of total operating assets is $300,000.

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a. If expenses are reduced by $18,000 and sales remain unchanged, what return on investment will result?

b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result?

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Fundamental Managerial Accounting Concepts

ISBN: 9780073526799

4th Edition

Authors: Thomas Edmonds, Bor-Yi Tsay, Philip Olds

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