Question
Alpha Division had the following information: Current operating asset base in Alpha Division $500,119 Margin for Alpha Division 21% It is nearing the end of
Alpha Division had the following information:
| Current operating asset base in Alpha Division | $500,119 |
| Margin for Alpha Division | 21% |
It is nearing the end of the year and management at Alpha is considering eliminating and writing off some of the assets before year end. If the asset base is decreased by $63,856, with no other changes, what will Alpha Division's return on investment be?
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Auditing A Risk Based Approach
Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg
12th Edition
035772187X, 978-0357721872
