Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question Three: The service division of Al Hinai Industries reported the following results for 2021. Sales Variable costs Controllable fixed costs Average operating assets OMR

image text in transcribed

Question Three: The service division of Al Hinai Industries reported the following results for 2021. Sales Variable costs Controllable fixed costs Average operating assets OMR 500,000 300,000 75,000 625,000 Required: 1. Based on the above data, compute the return on investment (ROI) for Al Hinai Industries. (4 marks) 2. What is the expected ROI if the average operating assets is reduced by OMR125,000, assuming that the controllable margin remains unchanged? (2 marks) 3. Compute the controllable margin and the expected ROI if the sales are increased to OMR100,000 and the contribution margin percentage remains unchanged at 40%. (6 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Secretarial Audits Under Corporate Laws And Annual Return Certification

Authors: CS Shilpa Dixit And CS Amogh Diwan CS Milind Kasodekar

1st Edition

9389449324, 978-9389449327

More Books

Students also viewed these Accounting questions

Question

1. Identify three approaches to culture.

Answered: 1 week ago

Question

2. Define communication.

Answered: 1 week ago

Question

4. Describe how cultural values influence communication.

Answered: 1 week ago