Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rundle Company calculated its return on investment as 10 percent. Sales are now $420,000, and the amount of total operating assets Is $440,000. Required

image text in transcribed

Rundle Company calculated its return on investment as 10 percent. Sales are now $420,000, and the amount of total operating assets Is $440,000. Required a. If expenses are reduced by $33,000 and sales remain unchanged, what return on Investment will result? Note: Round your percentage answer to 2 decimal places. (i.e., 0.2345 should be entered as 23.45). b. If both sales and expenses cannot be changed, what change in the amount of operating assets is required to achieve the same result? Note: Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. a Return on investment b. Operating assets must % by

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

Fundamental Managerial Accounting Concepts

Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds

8th edition

978-1259569197

More Books

Students also viewed these Accounting questions

Question

Who should pay for the expenses of certification? Why?

Answered: 1 week ago

Question

What is schedule C which is Form 1040?

Answered: 1 week ago

Question

What are the four basic criteria for segmentation?

Answered: 1 week ago

Question

How are consumer and organizational buying behaviors different?

Answered: 1 week ago