How to calculate the ROi in this case

ROI = Operating profit before tax / Average Invested capital.

Average invested capital will be equal to ending - beggining or what?

SEAT NUMBE FAMILY NA OTHER MACQUARIE University stion paper must be returned. not permitted to remove any amination room. SAMPI- national ha Question 8 (13 marks) f AS Billings Company is a decentralised wholesaler with two autonomous divisions. The divisions are evaluated on the basis of return on investment (ROD), with year-end bonuses given to the divisional managers who have the highest ROIs. Operating results for the company's two divisions - X and Y for the most recent year are given below: eubvol z 142000 Sales Division X Division Y Cost of goods sold $ 10,500,000 $ 458,000 Operating expenses 6,000,000 316,000 Invested capital at the beginning of the year 3,200,000 58,000 Invested capital at the end of the year 3,000,000 1,200,000 5,000,000 2,000,000 The company had an overall ROI of 15% last year. The company is considering an expansion project in the upcoming year. The project would be implemented by one of the two divisions. The following data relate to the project: Expansion project Sales Cost of goods sold $ 2,000,000 Operating expenses 1,200,000 Invested capital 640,000 1,000,000 Required: (i) Calculate the current ROI of the two divisions. Show your calculations. ROT = Profit Before tax (3 marks) Ave invested cap. Y