An investment centre with capital employed of $750000 is budgeted to earn a profit of $200000 next year .A proposed non current asset investment of $125000 not included in the budget at present will earn a profit next year of $20000. The company cost of capital is 15%.

How can we calculate the ROI before and after the investment.

An investment centre in a company generates a profit of $24000 and the other information is given below:

Working capital                   20000

 Non current asset              230000

 Depreciation                      170000

How ROI can be calculated for the investment centre?

An investmentin a non current asset could be made which would result in a capital employed figure of $100000. The investment would result in a new profit figure of $35000 for the division .I f the investment is made what would the residual income be for the investment centre if the cost of capital is 12%.

A company has an operating profit of $20000 and operating asset of $95000.The cost of capital is 12%. There is a proposed investment of $10000 which will increase the operating profit by $1400 from this information how can we calculate the ROI before investment and after investment.

Calculate the residual income with and without the investment.

A investment centre has a capital employed of $600000 and has a budget to earn a profit of $100000 in the coming year.A propsed fixed asset investment of $150000 not included in the budget at present,will earn a profit next year of $23000 after depreciation.The company's cost of capital is 13%.

How can we calculate the ROI before and after the investment.

Calculate the residual income with and without investment.

A company manufactures and sells tables and chairs in a standard mix of one table to four chairs.

 

 Product                                    Table                           Chair

 Variable cost per unit           120                                  16

 c/s ratio                                     0.4                                0.6

 Annual fixed cost is $100000

Calculate the breakeven point in sales revenue?