Question
The area manager of the Sheridan Restaurants is considering two possible expansion alternatives. The required investments, expected controllable margins, and the ROIs of each are
The area manager of the Sheridan Restaurants is considering two possible expansion alternatives. The required investments, expected controllable margins, and the ROIs of each are as follows:
| Project | Investment | Controllable Margin | ROI |
|---|---|---|---|
| Winnipeg | $295000 | $102000 | 34.58% |
| Regina | $704000 | $196000 | 27.84% |
The Sheridan segment has currently $5005000 in invested capital and a controllable margin of $1451450. Which one of following projects will increase the Sheridan divisions current ROI?
both the Winnipeg and Regina options
only the Winnipeg option
only the Regina option
neither the Winnipeg nor the Regina options
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Advanced Financial Accounting
Authors: Theodore Christensen, David Cottrell, Cassy Budd
13th Edition
1260772136, 9781260772135
