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Cleopatra Corporations Lingerie division has a segment margin of $729,000 and net sales revenue of $5,400,000 for the current reporting period. Average total assets for
Cleopatra Corporations Lingerie division has a segment margin of $729,000 and net sales revenue of $5,400,000 for the current reporting period. Average total assets for the period were $3,375,000. The division manager is considering implementing a new inventory system which would reduce the average total assets by $675,000. Assuming no change in sales or segment margin, the projected ROI with the reduction in inventory would be
a 13.5%.
b 21.6%.
c 24%.
d 20%.
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