Question
Cruise Division of Brambles Companys operating results include: controllable margin, $209000; sales, $1750300; and operating assets, $1100000. The Cruise Divisions ROI is 19%. Management is
Cruise Division of Brambles Companys operating results include: controllable margin, $209000; sales, $1750300; and operating assets, $1100000. The Cruise Divisions ROI is 19%. Management is considering a project with sales of $124500, variable expenses of $74200, controllable fixed costs of $50300; and an asset investment of $90100. Should management accept this new project?
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| No, since ROI will be lowered. |
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| Yes, since ROI will increase. |
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| Yes, since additional sales always mean more customers. |
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| No, since a loss will be incurred. |
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2001 Miller Audit Procedures Miller Engagement
Authors: George Georgiades
1st Edition
0156071940, 978-0156071949
