Question
Round your answers to four decimal places before converting to a percentage. For example, .06349 would be rounded to .0635 and entered as 6.35 percent.
Round your answers to four decimal places before converting to a percentage. For example, .06349 would be rounded to .0635 and entered as "6.35" percent.
1. Compute the ROI for each investment.
Juice Box ROI | fill in the blank 1 % |
Fruit Pouch ROI | fill in the blank 2 % |
2. Compute the divisional ROI for each of the following four alternatives:
a. The juice box is added. fill in the blank 3 %
b. The fruit pouch is added. fill in the blank 4 %
c. Both investments are added. fill in the blank 5 %
d. Neither investment is made; the status quo is maintained. fill in the blank 6 %
Assuming that divisional managers are evaluated and rewarded on the basis of ROI performance, which alternative do you think the divisional manager will choose?
Juice BoxFruit PouchBoth ProjectsStatus QuoJuice Box
3. Which of the data analytic typesdescriptive, diagnostic, predictive or prescriptiveis used in determining which, if any, new investment to make?
DescriptiveDiagnosticPredictivePrescriptiveDiagnostic
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1. Return on investment (ROI) = Margin x Turnover or ROI = Operating income Average operating assets
2. Return on investment (ROI) = Margin x Turnover or ROI = Operating income Average operating assets. Based upon the information, which choice will the division manager choose?
ROI, Margin, Turnover Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division. Frozen Foods Division: Required: 1. Compute the ROI and the margin and turnover ratios for each year for the Frozen Foods Division. 2. Compute the ROI and the margin and turnover ratios for each year for the Canned Foods Division. 3. Indicate the reason for change in ROI from Year 1 to Year 2 for the Frozen Foods Division. The increase in the Frozen Foods Division ROI is due to the increase in turnover. Indicate the reason for change in ROI from Year 1 to Year 2 for the Canned Foods Division. The decrease in the Canned Foods Division ROI is due to the decrease in margin. 4. Which of the data analytic types-descriptive, diagnostic, predictive or prescriptive-is Allard using in comparing Year 1 to Year 2 for the ratios? Feedback Theck My Work 1. and 2. Return on investment (ROI) = Margin x Turnover or ROI = Operating income Average operating assets Margin = Operating Income Sales Turnover = Sales Average operating assets Average operating assets = (Beginning net book value + Ending net book value )2Step by Step Solution
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