Question
The current controllable margin for Claremont Division is $62300. Its current operating assets are $200000. The division is considering purchasing equipment at the beginning of
The current controllable margin for Claremont Division is $62300. Its current operating assets are $200000. The division is considering purchasing equipment at the beginning of the year for $60200 that will increase annual controllable margin by an estimated $10000. If the equipment is purchased, what will happen to the return on investment for Claremont Division? (Round answer to nearest cent)
an increase of 16.1%
a decrease of 8.2%
a decrease of 3.4%
a decrease of 23.0%
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Accounting Ethics
Authors: Iris Stuart
1st Edition
1118542401, 9781118542408
