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Sanders Siding produces and sells two productsaluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers
Sanders Siding produces and sells two productsaluminum and vinyl. Each of these products is made in a dedicated manufacturing facility, and the product line managers are evaluated based on the product line's return on investment. The following data is from the most recent year of operations.
Aluminum Vinyl
Sales $4,000,000 $3,000,000
Variable costs 1,800,0001,800,000
Direct fixed costs 1,500,000 900,000
Average assets2,000,000 1,200,000
Calculate return on investment for each product line?
Aluminum Vinyl
ROI ?% ?%
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