Respuesta :
Answer:
Osaka:
ROI = 32% in terms of margin
ROI = 400% in terms of turnover
Yokohama:
ROI = 20% in terms of margin
ROI = 200% in terms of turnover
Explanation:
ROI is an investor ratio meant to measure return/performance of a particular investment.
The formula for calculating ROI is as follows:
ROI= NET PROFIT ÷ COST OF INVESTMENT/AVERAGE OPERATING ASSETS.
ROI for Osaka division is as follows;
ROI = $816000÷$2550000×100
ROI = 32%
ROI for Yokohama division is as follows;
ROI = $3200000÷$16000000×100
ROI = 20%
The formula for calculating ROI in terms of turnover is as follows;
ROI in terms of turnover = sales÷average operating assets×100
ROI for Osaka division is as follows;
ROI = $10200000÷$2550000×100
ROI = 400%
ROI for Yokohama division is as follows;
ROI = $32000000÷$16000000×100
ROI = 200%
So form the results it's pretty clear that division Osaka is performing better than Yokohama. But we can also see that the level of investment in Osaka is also greater than that of Yokohama.
Answer:
Osaka Yokohama
$ $
Profit margin
= Net operating income x 100 816,000 x 100 $3,200,000 x 100
Sales 10,200,000 32,000,000
= 8% 10%
Asset turnover
= Sales 10,200,000 32,000,000
Average operating assets 2,550,000 16,000,000
= 4 2
ROI
= Profit margin x asset turnover 8% x 4 10% x 2
32% 20%
Explanation:
In this question, we need to calculate profit margin by dividing the net operating income by the sales multiplied by 100. Then, we will calculate asset turnover by dividing sales by average operating assets. Finally, we will calculate ROI by multiplying the profit margin by asset turnover.
